N-CSR 1 frankncsr.htm N-CSR Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES


Investment Company Act file number: 811-21532


FRANK FUNDS

(Exact Name of Registrant as Specified in Charter)


781 Crandon Blvd. Unit 602

Key Biscayne, FL 33149

(Address of Principal Executive Offices)  (Zip Code)


Brian J. Frank, Frank Capital Partners LLC

781 Crandon Blvd. Unit 602

Key Biscayne, FL 33149

 (Name and Address of Agent for Service)


With copy to:

JoAnn M. Strasser, Thompson Hine LLP

312 Walnut Street, 14th Floor, Cincinnati, Ohio  45202


Registrant’s Telephone Number, including Area Code:  973-887-7698


Date of fiscal year end: June 30


Date of reporting period: June 30, 2018


Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.


A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1.  Reports to Stockholders.






FRANK FUNDS



FRANK VALUE FUND

Class C – FNKCX

Institutional Class – FNKIX

Investor Class – FRNKX



LEIGH BALDWIN TOTAL RETURN FUND – LEBOX



CAMELOT EVENT DRIVEN FUND

Class A - EVDAX

Institutional Class - EVDIX









ANNUAL REPORT

June 30, 2018





To our Fellow Shareholders,


Frank Funds is proud to have welcomed the Camelot Event-Driven Fund to the Trust in the fiscal year ended June 30, 2018. Camelot Event-Driven Fund boasts a superior, soon to be 15-year track record in the Morningstar Multi-alternative space, with performance in the top decile across every time period including the 10-years ended June 30, 2018. Thomas Kirchner and Paul Hoffmeister head the portfolio management team, offering shareholders a unique strategy with low correlation. Frank Funds believes further expansion of its active fund offerings at a time when general stock strategies trade at dangerously high valuations will benefit its shareholders over the next half-cycle as well as the long-term.


Frank Value Fund Portfolio Performance


The Frank Value Fund (“Value Fund”) Investor Class lost -1.51% for the fiscal year ended June 30, 2018, compared to a gain of 14.37% for its benchmark, the S&P 500 Total Return Index. Since inception (7/21/04) on an annualized basis, the Value Fund has generated a return of 6.13%, compared to a gain of 8.92% for the S&P 500 Total Return Index.


Relative to the benchmark, the Value Fund experienced a challenging fiscal year in the Materials sector, driven primarily by stock allocation decisions. In the Gold & Silver Ores industry group, Barrick Gold Corporation, a major gold mining company, lowered its gold production expectations. Management has indicated this is an intentional decline in production as the company focuses on more profitable mines, thereby lowering its all-in sustaining costs. As such, the Value Fund continued to hold its stake in Barrick Gold Corporation during the fiscal year ended June 30, 2018.


The Value Fund experienced a strong year in the technology sector, driven by stock allocation decisions. In the Technology sector, Shutterfly, a photofinishing and custom merchandising company, posted revenue, operating income, and net income growth. The Value Fund sold its position in Shutterfly after a one-year holding period and 83% in capital gains due to full-valuation from multiple-expansion.


Frank Capital Partners LLC continues to position the Frank Value Fund defensively. The Advisor’s research process is based on unmovable, absolute-valuation pillars that have shown stocks to be in extreme territory for several years. Historically, maintaining an investment discipline similar to Frank Capital Partner’s has resulted in superior long-term returns. The Advisor believes the trends that have driven equity valuations to historical highs are temporary and based on an expansion in debt due to low interest rates. Since debt as a percentage of GDP continues to increase, the trend is both unsustainable and dangerous. Rising interest rates and increased levels of cost and wage inflation result in less and less dollars available to service the outstanding debt, which will cause credit spreads to widen, companies to enter financial distress, and asset prices to decline. Frank Capital Partners LLC is well-positioned to benefit from a mean-reversion of this nature, and the Advisor notes the high option-value in its cash positions.


Leigh Baldwin Total Return Fund Portfolio Performance


Leigh Baldwin, the advisor to the Leigh Baldwin Total Return Fund (“Baldwin Fund”), is beginning its eleventh year at the helm of LEBOX.  The on-going mantra of the Baldwin Fund remains the same, invest in high quality stocks that generally pay dividends and use options to simultaneously protect these equity investments from significant downturns. The goal of the fund is to outperform traditional equity and fixed income investments during periods of high volatility and/or rising interest rates.  


The Baldwin Fund returned 0.59% for the year ending June 30, 2018 which compares to a 1.22% gain in the HFRX market neutral index during the same time period.


Camelot Event Driven Fund Portfolio Performance


The Camelot Event-Driven Fund Institutional Class returned 9.71% for the fiscal year ended June 30, 2018, compared to 14.37% for the S&P 500 Total Return Index.



Thank you for your investments.  We look forward to continue working with you.


Sincerely,

Brian Frank

President

Frank Funds Trust



Frank Value Fund – Investor Class

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018

(UNAUDITED)


FUND/INDEX

1-YEAR

5-YEAR

10-YEAR

SINCE INCEPTION

VALUE AS OF 6/30/18

Frank Value Fund - Investor Class

-1.51%

2.68%

6.23%

6.13%

 $    22,922

S&P 500 Total Return Index

14.37%

13.41%

10.17%

8.92%

 $    32,889


Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr002.gif]


This chart assumes an initial investment of $10,000 made on 7/21/2004 for the Investor Class (commencement of investment operations). Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


Per the fee table in the November 1, 2017 Prospectus, the Fund’s total annual operating expense ratio was 1.54% for Investor Class Shares.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (888)-217-5426.



Frank Value Fund – Institutional Class

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018

(UNAUDITED)


FUND/INDEX

1-YEAR



5-YEAR

SINCE INCEPTION

VALUE AS OF 6/30/18

Frank Value Fund - Institutional Class

-1.25%

2.94%

7.12%

 $   16,925

S&P 500 Total Return Index

14.37%

13.41%

13.73%

 $   26,769


Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr004.gif]


This chart assumes an initial investment of $10,000 made on 11/03/2010 for the Institutional Class (commencement of investment operations). Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


Per the fee table in the November 1, 2017 Prospectus, the Fund’s total annual operating expense ratio was 1.29% for Institutional Class Shares.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (888)-217-5426.



Frank Value Fund – Class C

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018

(UNAUDITED)


FUND/INDEX

1-YEAR



5 Year

SINCE INCEPTION

VALUE AS OF 6/30/18

Frank Value Fund - Class C

-2.18%

1.93%

7.06%

 $   16,992

S&P 500 Total Return Index

14.37%

13.41%

14.28%

 $   28,210


Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr006.gif]


This chart assumes an initial investment of $10,000 made on 9/23/2010 for Class C (commencement of investment operations). Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


Per the fee table in the November 1, 2017 Prospectus, the Fund’s total annual operating expense ratio was 2.29% for Class C Shares.


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (888)-217-5426.


Leigh Baldwin Total Return Fund

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018


FUND/INDEX

1-YEAR

5-YEAR

SINCE

INCEPTION

VALUE AS OF 6/30/18

Leigh Baldwin Fund

0.59%

-0.42%

-1.31%

      $  8,776

S&P 500 Index

14.37%

13.41%

10.36%

      $ 26,562

HFRX Equity Market Neutral Index

1.22%

1.35%

-0.68%

$  9,347

                

    Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr008.gif]



This chart assumes an initial investment of $10,000 made on 8/1/2008 (commencement of investment operations).  Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance.   Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


Equity Market Neutral strategies employ sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between securities, select securities for purchase and sale. These can include both Factor-based and Statistical Arbitrage/Trading strategies. Factor-based investment strategies include strategies in which the investment thesis is predicated on the systematic analysis of common relationships between securities. In many but not all cases, portfolios are constructed to be neutral to one or multiple variables, such as broader equity markets in dollar or beta terms, and leverage is frequently employed to enhance the return profile of the positions identified. Statistical Arbitrage/Trading strategies consist of strategies in which the investment thesis is predicated on exploiting pricing anomalies which may occur as a function of expected mean reversion inherent in security prices; high frequency techniques may be employed and trading strategies may also be employed on the basis on technical analysis or opportunistically to exploit new information the investment manager believes has not been fully, completely or accurately discounted into current security prices.


Hedge Fund Research, Inc. (HFR) utilizes a UCITSIII compliant methodology to construct the HFRX Hedge Fund Indices. The methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe. HFRX Indices utilize state-of-the-art quantitative techniques and analysis; multi-level screening, cluster analysis, Monte-Carlo simulations and optimization techniques ensure that each Index is a pure representation of its corresponding investment focus.


Per the fee table in the November 1, 2017 Prospectus the Fund’s total annual operating expenses ratio was 3.53%. The Adviser has contractually agreed to limit its fees and reimburse expenses, subject to certain limitations, until at least October 31, 2023. After waiver the Fund’s net expense ratio in the November 1, 2017 Prospectus was 1.82%.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.  


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (888)-217-5426.


Camelot Event Driven Fund – Class A

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018

(UNAUDITED)


FUND/INDEX

1-YEAR


5-YEAR


10-YEAR

SINCE INCPETION

VALUE AS OF 6/30/18

Camelot Event Driven Fund - Class A (with load)

3.41%

4.35%

4.43%

5.52%

 $   21,915

Camelot Event Driven Fund - Class A (without load)

9.41%

5.54%

5.02%

5.93%

 $   23,188

S&P 500 Total Return Index

14.37%

13.41%

10.17%

9.26%

 $   36,463


Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr010.gif]


This chart assumes an initial investment of $10,000 made on 11/21/2003 for Class A (commencement of investment operations). Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


Class A shares of the Fund have a maximum sales charge of 5.50%.


Per the fee table in the June 27, 2018 Prospectus the Fund’s total annual operating expenses ratio was 2.80%. The Adviser has contractually agreed to limit its fees and reimburse expenses, subject to certain limitations, until at least June 30, 2019. After waiver the Fund’s net expense ratio in the June 27, 2018 Prospectus was 2.00%.


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (866) 706-9790.



Camelot Event Driven Fund – Institutional Class

AVERAGE ANNUAL RATE OF RETURN (%)

FOR PERIODS ENDED JUNE 30, 2018

(UNAUDITED)


FUND/INDEX

1-YEAR


5-YEAR

SINCE INCPETION

VALUE AS OF 6/30/18

Camelot Event Driven Fund - Institutional Class

9.71%

5.82%

4.70%

 $   14,478

S&P 500 Total Return Index

14.37%

13.41%

14.89%

 $   30,649


Cumulative Performance Comparison $10,000 Investment Since Inception

[frankncsr012.gif]


This chart assumes an initial investment of $10,000 made on 06/07/2010 for the Institutional Class (commencement of investment operations). Total return is based on the net change in NAV and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


The Standard & Poor’s 500 Index (“S&P 500”) is a market value-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The S&P 500 is a widely recognized, unmanaged index of common stock prices.  The figures for the S&P 500 reflect all dividends reinvested but do not reflect any deductions for fees, expenses or taxes.


Per the fee table in the June 27, 2018 Prospectus the Fund’s total annual operating expenses ratio was 2.55%. The Adviser has contractually agreed to limit its fees and reimburse expenses, subject to certain limitations, until at least June 30, 2019. After waiver the Fund’s net expense ratio in the June 27, 2018 Prospectus was 1.75%.


The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


Current performance may be lower or higher than the performance data quoted.  To obtain performance data current to the most recent month end, please call (866) 706-9790.


FRANK VALUE FUND

PORTFOLIO ANALYSIS

JUNE 30, 2018 (UNAUDITED)




The following chart gives a visual breakdown of the Frank Value Fund (the “Value Fund”) by the industry sectors, while the underlying securities represent a percentage of the portfolio of investments.


[frankncsr014.gif]



Sectors are based on Morningstar® classifications.

Portfolio composition subject to change.




LEIGH BALDWIN TOTAL RETURN FUND

           PORTFOLIO ANALYSIS

              JUNE 30, 2018 (UNAUDITED)




The following chart gives a visual breakdown of the Leigh Baldwin Total Return Fund (the “Baldwin Fund”) by the industry sectors or investment type, while the underlying securities represent a percentage of the portfolio of investments.

[frankncsr016.gif]



Sectors are based on Morningstar® classifications.

The above chart excludes Written Options.  Purchased options are represented by the underlying security sector.


Portfolio composition subject to change.




CAMELOT EVENT DRIVEN FUND

PORTFOLIO ANALYSIS

JUNE 30, 2018 (UNAUDITED)



The following chart gives a visual breakdown of the Camelot Event Driven Fund (the “Camelot Fund”) by the industry sectors or investment type, while the underlying securities represent a percentage of the portfolio of investments.


[frankncsr018.gif]



Categorizations above are made using Morningstar® classifications.


Portfolio composition is subject to change.  


Excludes securities sold short and written options. Purchased options are represented by the underlying security sector.  




 

 

 

 

 

 

Value Fund

 

 

 

Schedule of Investments

 

 

 

June 30, 2018

 

 

 

 

 

Shares

 

 

Value

 

 

 

 

COMMON STOCKS - 21.04%

 

 

 

 

 

Cable & Other Pay Television Services - 4.76%

 

15,595

 

Liberty Latin America Ltd. Class A *

$             298,177

25,869

 

Liberty Latin America Ltd. Class C *

501,341

 

 

 

799,518

Electronic Computers - 1.07%

 

971

 

Apple, Inc.

179,742

 

 

 

 

Fire, Marine & Casualty Insurance - 7.08%

 

4,059

 

Berkshire Hathaway, Inc. Class B *

757,612

30,490

 

Greenlight Capital Reinsurance, Ltd. Class A *

               432,958

 

 

 

1,190,570

Gold and Silver Ores - 6.06%

 

36,055

 

Barrick Gold Corp.

473,402

39,780

 

Goldcorp, Inc.

545,384

 

 

 

1,018,786

Patent Owners & Lessors - 2.07%

 

43,003

 

Liberty Tax, Inc.

347,249

 

 

 

 

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $2,990,451) - 21.04%

            3,535,865

 

 

 

 

CORPORATE BONDS - 8.01% ()

 

 

 

 

 

Cigarettes - 2.66%

 

450,000

 

Philip Morris International, Inc. 1.625%, 02/21/2019

               446,915

 

 

 

 

Electromedical & Electrotherapeutic Apparatus - 1.18%

 

200,000

 

Medtronic Global Holdings S.C.A. 1.70%, 03/28/2019

               198,716

 

 

 

 

Finance Services - 1.80%

 

303,000

 

American Express Co. 2.125%, 03/18/2019

               301,837

 

 

 

 

National Commercial Banks - 2.37%

 

400,000

 

WFC Holdings Corp. 2.125%, 04/22/2019

               397,745

 

 

 

 

TOTAL FOR CORPORATE BONDS  (Cost $1,350,603) - 8.01%

            1,345,213

 

 

 

 

U.S. GOVERNMENT AGENCIES AND OBLIGATIONS - 58.91% ()

 

 

 

 

 

U.S. Treasury Note Bonds - 58.91%

 

2,500,000

 

U.S. Treasury Bill 0.00%, 07/19/2018

            2,497,950

2,500,000

 

U.S. Treasury Bill 0.00%, 09/13/2018

            2,490,470

1,000,000

 

U.S. Treasury Note 1.125%, 12/31/2019

               980,195

1,000,000

 

U.S. Treasury Note 1.125%, 02/28/2019

               992,617

1,000,000

 

U.S. Treasury Note 1.25%, 03/31/2019

               992,422

1,000,000

 

U.S. Treasury Note 1.125%, 04/30/2020

               975,117

1,000,000

 

U.S. Treasury Note 1.375%, 01/31/2021

               969,492

 

 

 

 

TOTAL FOR U.S. GOVERNMENT AGENCIES AND OBLIGATIONS  (Cost $9,924,750) - 58.91%

            9,898,263

 

 

 

 

MONEY MARKET FUND - 11.08%

 

1,862,470

 

Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio  1.71% **

            1,862,470

TOTAL FOR MONEY MARKET FUND (Cost $1,862,470) - 11.08%

            1,862,470

 

 

 

 

TOTAL INVESTMENTS (Cost $16,128,274) *** - 99.04%

16,641,811

 

 

 

 

OTHER ASSETS IN EXCESS OF LIABILITIES, NET - 0.96%

               161,499

 

 

 

 

NET ASSETS - 100.00%

$        16,803,310

 

 

 

 

* Non-income producing securities during the period.

 

** Variable rate security; the coupon rate shown represents the yield at June 30, 2018.

 

*** Refer to Note 10 for tax cost.

 

Level 2 Security

 

 

The accompanying notes are an integral part of these financial statements.

 





 

 

 

 

 

 

Baldwin Fund

 

 

 

Schedule of Investments

 

 

 

June 30, 2018

 

 

 

 

 

Shares

 

 

Value

 

 

 

 

COMMON STOCKS - 66.21%

 

 

 

 

 

Air Courier Services - 3.74%

 

400

 

FedEx Corp.

$          90,824

 

 

 

 

Air Transportation, Scheduled - 4.08%

 

2,000

 

Delta Air Lines, Inc.

99,080

 

 

 

 

Biological Products (No Diagnostic Substances) - 4.50%

 

400

 

Amgen, Inc.

73,836

500

 

Gilead Sciences, Inc.

35,420

 

 

 

109,256

Electronic Computers - 0.54%

 

2,000

 

Fitbit, Inc. Class A *

13,060

 

 

 

 

Farm Machinery & Equipment - 3.46%

 

600

 

Deere & Co.

83,880

 

 

 

 

Finance Services - 1.21%

 

300

 

American Express Co.

29,400

 

 

 

 

National Commercial Bank - 2.06%

 

1,000

 

US Bancorp

50,020

 

 

 

 

Oil & Gas Field Services, Nec - 3.32%

 

1,200

 

Schlumberger Ltd.

80,436

 

 

 

 

Petroleum Refining - 6.76%

 

1,000

 

Exxon Mobil Corp.

82,730

2,000

 

Suncor Energy, Inc. (Canada)

81,360

 

 

 

164,090

Pharmaceutical Preparations - 1.82%

 

800

 

Bristol-Myers Squibb Co.

44,272

 

 

 

 

Retail Department Stores - 3.09%

 

2,000

 

Macy's, Inc.

            74,860

 

 

 

 

Retail-Grocery Stores - 5.07%

 

2,000

 

Kroger, Inc.

            56,900

3,000

 

Sprouts Farmers Market, Inc. *

            66,210

 

 

 

          123,110

Rubber & Plastics Footwear - 3.28%

 

1,000

 

Nike, Inc. Class B

            79,680

 

 

 

 

Semiconductors & Related Devices - 11.79%

 

1,000

 

Advanced Micro Devices, Inc. *

            14,990

1,500

 

Applied Materials, Inc.

            69,285

400

 

Broadcom, Inc.

            97,056

2,000

 

Micron Technology, Inc. *

          104,880

 

 

 

          286,211

Services-Business Services, NEC - 3.87%

 

400

 

Alibaba Group Holding Ltd. (China) *

            74,212

100

 

Mastercard, Inc. Class A

            19,652

 

 

 

            93,864

Services-Computer Programming, Data Processing, Etc. - 0.54%

 

1,000

 

Snap, Inc. Class A

            13,090

 

 

 

 

Services-Personal Services - 2.82%

 

3,000

 

H&R Block, Inc.

            68,340

 

 

 

 

Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics - 1.61%

 

500

 

The Proctor & Gamble Co.

            39,030

 

 

 

 

Telephone Communications (No Radio) - 2.65%

 

2,000

 

AT&T, Inc.

64,220

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $1,627,277) - 66.21%

        1,606,723

 

 

 

 

EXCHANGE TRADED FUNDS - 10.33%

 

1,000

 

Alerian MLP ETF

10,100

600

 

SPDR Dow Jones Industrial Average ETF Trust

145,638

800

 

SPDR Gold Shares *

94,920

TOTAL FOR EXCHANGE TRADED FUNDS (Cost $257,359) - 10.33%

          250,658

 

 

 

 

INVESTMENTS IN PURCHASED OPTIONS, AT VALUE (Premiums Paid $109,639) - 4.77%

          115,683

 

 

 

 

MONEY MARKET FUND - 20.59%

 

499,557

 

Fidelity Government Fund Class I 1.80% **

          499,557

TOTAL FOR MONEY MARKET FUND - (Cost $499,557) 20.59%

          499,557

 

 

 

 

TOTAL INVESTMENTS (Cost $2,493,832) *** - 101.90%

2,472,621

 

 

 

 

INVESTMENTS IN WRITTEN OPTIONS, AT VALUE (Premiums Received $80,086) - (3.51)%

          (85,220)

 

 

 

 

ASSETS IN EXCESS OF LIABILITIES, NET - 1.61%

39,167

 

 

 

 

NET ASSETS - 100.00%

$      2,426,568

 

 

 

 

* Non-income producing securities during the period.

 

** Variable rate security; the coupon rate shown represents the yield at June 30, 2018.

 

*** Refer to Note 10 for tax cost.

 

The accompanying notes are an integral part of these financial statements.

 





 

 

 

 

 

 

 

Baldwin Fund

Schedule of Purchased Options

June 30, 2018

 

 

 

 

 

 

 

PUT OPTIONS - 4.77% *

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

1,000

 

Advanced Micro Devices, Inc.

11,000

11.00

7/20/2018

$                20

 

 

 

 

 

 

 

1,000

 

Alerian MLP ETF

10,000

10.00

10/19/2018

450

 

 

 

 

 

 

 

200

 

Alibaba Group Holding Ltd. (China)

42,000

210.00

8/17/2018

5,230

 

 

 

 

 

 

 

200

 

Alibaba Group Holding Ltd. (China)

42,000

210.00

9/21/2018

5,448

 

 

 

 

 

 

 

300

 

American Express Co.

28,500

95.00

7/20/2018

363

 

 

 

 

 

 

 

200

 

Amgen, Inc.

37,000

185.00

7/20/2018

700

 

 

 

 

 

 

 

400

 

Amgen, Inc.

74,000

185.00

10/17/2018

2,484

 

 

 

 

 

 

 

1,000

 

Applied Materials, Inc.

50,000

50.00

7/20/2018

3,800

 

 

 

 

 

 

 

500

 

Applied Materials, Inc.

27,500

55.00

10/19/2018

4,580

 

 

 

 

 

 

 

2,000

 

AT&T, Inc.

68,000

34.00

7/20/2018

4,320

 

 

 

 

 

 

 

400

 

Bristol-Myers Squibb Co.

22,000

55.00

8/17/2018

688

 

 

 

 

 

 

 

800

 

Bristol-Myers Squibb Co.

44,000

55.00

1/18/2019

3,000

 

 

 

 

 

 

 

400

 

Broadcom, Inc.

104,000

260.00

8/17/2018

7,240

 

 

 

 

 

 

 

600

 

Deere & Co.

90,000

150.00

8/17/2018

7,242

 

 

 

 

 

 

 

2,000

 

Delta Air Lines, Inc.

110,000

55.00

8/17/2018

11,700

 

 

 

 

 

 

 

1,000

 

Exxon Mobil Corp.

77,500

77.50

8/17/2018

760

 

 

 

 

 

 

 

400

 

FedEx Corp

104,000

260.00

10/19/2018

13,240

 

 

 

 

 

 

 

1,000

 

Fitbit, Inc. Class A

8,000

8.00

8/8/2018

1,660

 

 

 

 

 

 

 

1,000

 

Fitbit, Inc. Class A

8,000

8.00

11/16/2018

1,910

 

 

 

 

 

 

 

500

 

Gilead Sciences, Inc.

36,250

72.50

7/20/2018

1,135

 

 

 

 

 

 

 

1,000

 

H&R Block, Inc.

24,000

24.00

7/20/2018

1,290

 

 

 

 

 

 

 

2,000

 

H&R Block, Inc.

48,000

24.00

10/19/2018

4,500

 

 

 

 

 

 

 

2,000

 

Macy's, Inc.

60,000

30.00

8/17/2018

860

 

 

 

 

 

 

 

100

 

Mastercard, Inc. Class A

18,000

180.00

7/20/2018

45

 

 

 

 

 

 

 

2,000

 

Micron Technology, Inc.

88,000

44.00

7/20/2018

280

 

 

 

 

 

 

 

1,000

 

Nike, Inc. Class B

72,500

72.50

10/19/2018

1,520

 

 

 

 

 

 

 

1,200

 

Schlumberger Ltd.

90,000

75.00

9/21/2018

10,044

 

 

 

 

 

 

 

1,000

 

Snap, Inc. Class A

14,000

14.00

7/20/2018

1,130

 

 

 

 

 

 

 

600

 

SPDR Dow Jones Industrial Average ETF Trust

148,200

247.00

9/21/2018

4,740

 

 

 

 

 

 

 

800

 

SPDR Gold Shares

100,000

125.00

7/20/2018

5,024

 

 

 

 

 

 

 

2,000

 

Sprouts Farmers Market, Inc.

45,000

22.50

7/20/2018

1,600

 

 

 

 

 

 

 

1,000

 

Sprouts Farmers Market, Inc.

22,500

22.50

9/21/2018

1,500

 

 

 

 

 

 

 

2,000

 

Suncor Energy, Inc. (Canada)

78,000

39.00

9/21/2018

2,440

 

 

 

 

 

 

 

1,000

 

The Kroger Co.

26,000

26.00

7/20/2018

100

 

 

 

 

 

 

 

1,000

 

The Kroger Co.

26,000

26.00

8/17/2018

270

 

 

 

 

 

 

 

1,000

 

The Proctor & Gamble Co.

80,000

80.00

7/20/2018

2,900

 

 

 

 

 

 

 

1,000

 

US Bancorp

50,000

50.00

9/21/2018

1,470

 

 

 

 

 

 

 

 

 

Total Put Options (Premiums Paid $109,639) - 4.77%

 

 

$       115,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PURCHASED OPTIONS (Premiums Paid $109,639) - 4.77%

 

 

$       115,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

Level 2 Security

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 





 

 

 

 

 

 

 

Baldwin Fund

Schedule of Written Options

June 30, 2018

 

 

 

 

 

 

 

WRITTEN OPTIONS - 3.51%*

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,000

 

Advanced Micro Devices, Inc.

11,000

11.00

7/20/2018

$       4,150

 

 

 

 

 

 

 

1,000

 

Alerian MLP ETF

10,000

10.00

10/19/2018

600

 

 

 

 

 

 

 

200

 

Alibaba Group Holding Ltd. (China)

42,000

210.00

8/17/2018

438

 

 

 

 

 

 

 

200

 

Alibaba Group Holding Ltd. (China)

42,000

210.00

9/21/2018

790

 

 

 

 

 

 

 

300

 

American Express Co.

28,500

95.00

7/20/2018

1,386

 

 

 

 

 

 

 

200

 

Amgen, Inc.

37,000

185.00

8/17/2018

1,200

 

 

 

 

 

 

 

500

 

Applied Materials, Inc.

27,500

55.00

10/19/2018

440

 

 

 

 

 

 

 

1,000

 

Applied Materials, Inc.

50,000

50.00

7/20/2018

330

 

 

 

 

 

 

 

1,000

 

AT&T, Inc.

34,000

34.00

7/20/2018

50

 

 

 

 

 

 

 

1,000

 

AT&T, Inc.

35,000

35.00

7/20/2018

30

 

 

 

 

 

 

 

400

 

Bristol-Myers Squibb Co.

22,000

55.00

1/18/2019

1,700

 

 

 

 

 

 

 

400

 

Broadcom, Inc.

104,000

260.00

8/17/2018

1,200

 

 

 

 

 

 

 

300

 

Deere & Co.

45,000

150.00

8/17/2018

915

 

 

 

 

 

 

 

1,000

 

Delta Air Lines, Inc.

55,000

55.00

8/17/2018

390

 

 

 

 

 

 

 

1,000

 

H&R Block, Inc.

24,000

24.00

7/20/2018

200

 

 

 

 

 

 

 

2,000

 

H&R Block, Inc.

48,000

24.00

10/19/2018

2,140

 

 

 

 

 

 

 

2,000

 

Macy's, Inc.

60,000

30.00

8/17/2018

16,700

 

 

 

 

 

 

 

100

 

Mastercard, Inc. Class A

18,000

180.00

7/20/2018

1,805

 

 

 

 

 

 

 

2,000

 

Micron Technology, Inc.

88,000

44.00

7/20/2018

17,600

 

 

 

 

 

 

 

1,000

 

Nike, Inc. Class B

72,500

72.50

10/19/2018

9,300

 

 

 

 

 

 

 

1,000

 

Snap, Inc. Class A

14,000

14.00

7/20/2018

290

 

 

 

 

 

 

 

600

 

SPDR Dow Jones Industrial Average ETF Trust

148,200

247.00

9/21/2018

3,180

 

 

 

 

 

 

 

800

 

SPDR Gold Shares

100,000

125.00

7/20/2018

56

 

 

 

 

 

 

 

2,000

 

Sprouts Farmers Market, Inc.

45,000

22.50

7/20/2018

1,000

 

 

 

 

 

 

 

1,000

 

Sprouts Farmers Market, Inc.

22,500

22.50

9/21/2018

1,300

 

 

 

 

 

 

 

2,000

 

Suncor Energy, Inc.

78,000

39.00

9/21/2018

5,960

 

 

 

 

 

 

 

1,000

 

The Kroger Co.

26,000

26.00

7/20/2018

2,690

 

 

 

 

 

 

 

1,000

 

The Kroger Co.

26,000

26.00

8/17/2018

2,810

 

 

 

 

 

 

 

1,000

 

US Bancorp

50,000

50.00

9/21/2018

1,970

 

 

 

 

 

 

 

1,000

 

Exxon Mobil Corp.

79,000

79.00

7/20/2018

4,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL WRITTEN OPTIONS (Premiums Received $80,086) - 3.51%

 

$      85,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

Level 2 Security

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 





 

 

 

 

 

 

Camelot Fund

 

 

 

Schedule of Investments

 

 

 

June 30, 2018

 

 

 

 

 

Shares

 

 

Value

 

 

 

 

COMMON STOCKS - 37.56%

 

 

 

 

 

Agriculture - 0.00%

 

240,000

 

Black Earth Farming Ltd. ADR ^ †

$               831

 

 

 

 

Automotive - 0.04%

 

5,926

 

Exide Technologies ^

8,593

 

 

 

 

Biotech & Pharma - 0.00%

 

167,850

 

Inyx, Inc. *

369

 

 

 

 

Chemicals - 5.72%

 

500

 

Linde AG (Germany)

104,246

34,576

 

MPM Holdings, Inc. *

1,166,940

 

 

 

1,271,186

Consumer Products - 4.92%

 

3,000

 

Colgate Palmolive Co. (a)

194,430

2,000

 

Kimberly Clark Corp.

210,680

8,000

 

Kraft Heinz Co. (b)

502,560

2,000

 

Hershey Co.

          186,120

 

 

 

        1,093,790

Gaming, Lodging & Restaurants - 0.68%

 

10,000

 

Guoco Group Ltd. (Hong Kong)

150,391

 

 

 

 

Hardware - 4.36%

 

 

124,229

 

IEC Electronics Corp. *

724,255

8,011

 

Medion AG (Germany)

147,965

4,000

 

Xerox Corp.

96,000

 

 

 

968,220

Healthcare Facilities & Services - 2.85

 

29,650

 

Brookdale Senior Living, Inc. (a) *

          269,518

11,796

 

McKesson Europe AG (Germany)

          364,043

 

 

 

          633,561

Holding Companies - 0.00%

 

400

 

Stoneleigh Partners Acquisition Corp. ^ *

0

 

 

 

 

Home & Office Products - 0.52%

 

4,500

 

Newell Brands, Inc.

116,055

 

 

 

 

IT Services - 0.00%

 

65,000

 

Computer Horizons Corp. ^ *

0

 

 

 

 

Media - 2.33%

 

 

 

50,000

 

30DC, Inc. *

155

4,000

 

Dish Network Corp. *

134,440

8,500

 

Liberty Media Corp-Liberty SiriusXM *

          382,925

 

 

 

517,520

Medical Equipment & Devices - 1.00%

 

2,000

 

Zimmer Biomet Holdings, Inc. (b)

222,880

 

 

 

 

Mining - 0.00%

 

 

 

109,444

 

Sacre-Coeur Minerals Ltd. (Canada) ^ † *

0

 

 

 

 

Oil, Gas & Coal - 1.72%

 

551

 

Dommo Energia SA ADR

22,085

12,178

 

Ocean Rig UDW, Inc. (Cayman Islands) *

359,007

 

 

 

381,092

Real Estate - 3.88%

 

45,000

 

Conwert Immobilien Invest SE (Austria) ^

                    0

25,800

 

CA Immobilien Anlagen AG (Austria)

          860,772

 

 

 

          860,772

Semiconductors - 1.01%

 

4,000

 

Qualcomm, Inc.

          224,480

 

 

 

 

Technology Services - 5.10%

 

17,000

 

comScore, Inc. *

          370,600

9,000

 

Dell Technologies, Inc. Class V (a) *

761,220

 

 

 

1,131,820

Telecom - 3.39%

 

 

 

9,000

 

GCI Liberty, Inc. (b) *

          405,720

64,529

 

NII Holdings, Inc. *

          251,663

13,000

 

Telecom Italia SpA ADR

            95,420

 

 

 

          752,803

Waste & Environmental Services & Equipment - 0.04%

 

43,000

 

Strategic Environmental & Energy Resources, Inc. ^ *

8,510

 

 

 

 

Escrow Shares - 0.00%

 

1,777

 

Exide Technologies ^ †

0

200

 

Petrocorp., Inc. ^ † *

0

 

 

 

0

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $10,012,706) - 37.56%

        8,342,873

 

 

 

 

ASSET-BACKED SECURITIES - 0.84%

 

6,481

 

AFC Home Equity Loan Trust Series 2000-02 Class 1A 2.88113% (1 Month LIBOR USD + 0.390%), 6/25/2030 ** +

5,702

160,621

 

Citigroup Mortgage Loan Trust Inc. Series 2005-OPT1 Class M3 2.79613% (1 Month LIBOR USD + 0.470%), 2/25/2035 ** +

153,790

649,319

 

Countrywide Asset-Backed Certificates Series 2007-11 Class 2M2 2.41113 (1 Month LIBOR USD + 0.320%), 6/25/2047 ** +

16,046

11,746

 

Countrywide Home Equity Loan Trust Series 2005-A Class 2A 2.31325% (1 Month LIBOR USD + 0.240%), 4/15/2035 ** +

11,281

960,000

 

Countrywide Alternative Loan Series 07-0A7 Class A3 0.5017% (1 Month LIBOR USD + 0.300%) 5/25/2047 ** + ^

0

TOTAL FOR ASSET-BACKED SECURITIES (Cost $173,947) - 0.84%

          186,819

 

 

 

 

CLOSED-END FUNDS - 9.89%

 

30,000

 

Altaba, Inc. (a) (b) *

2,196,300

TOTAL FOR CLOSED-END FUNDS (Cost $1,601,700) - 9.89%

        2,196,300

 

 

 

 

CONVERTIBLE BONDS - 2.26%

 

 

 

 

 

Banking - 2.26%

 

 

 

500,000

 

BNP Paribas Fortis SA (France) 1.671% (3 Month EURIBOR + 2.000%), Perpetual ** +

502,430

 

 

 

 

TOTAL FOR CONVERTIBLE BONDS (Cost $559,592) - 2.26%

          502,430

 

 

 

 

CORPORATE BONDS - 9.38%

 

 

 

 

 

Automotive - 2.53%

 

183,169

 

Exide Technologies 7.00%, 4/30/2025

119,060

493,193

 

Exide Technologies 11.00%, 4/30/2022 #

441,408

1,000,000

 

Exide Technologies 8.625%, 2/12/2018 + ^

0

 

 

 

560,468

Diversified Financial Services - 3.19%

 

5,000,000

 

Hellas Telecommunication Luxembourg II SCA (United Kingdom) 6.054%, 1/15/2015 + ^ #

6,250

110,000

 

Lehman Brothers Holdings, Inc. 5.98%, 2/17/2015 +

3,355

130,000

 

Lehman Brothers Holdings, Inc. 7.27%, 7/08/2014 +

3,900

100,000

 

Lehman Brothers Holdings, Inc. 7.00%, 1/28/2020 +

3,000

100,000

 

Lehman Brothers Holdings, Inc. 5.50%, 2/27/2020 +

3,000

100,000

 

Lehman Brothers Holdings, Inc. 8.25%, 9/23/2020 +

3,000

200,000

 

Lehman Brothers Holdings, Inc. 8.75%, 2/14/2023 +

6,000

1,000,000

 

Twin Reefs Pass-Through Trust 0.00%, Perpetual + ^ #

680,000

 

 

 

708,505

Media - 1.48%

 

 

 

58,000

 

iHeart Communications, Inc., 9.00%, 3/01/2021 +

43,790

276,000

 

iHeart Communications, Inc., 11.25%, 3/01/2021 +

209,760

100,000

 

iHeart Communications, Inc., 9.00%, 9/15/2022 +

76,000

 

 

 

329,550

Oil, Gas & Coal - 0.35%

 

3,500,000

 

OGX Austria GMBH 8.50%, 6/01/2018 + ^

35

550,000

 

Seadrill Ltd. (United Kingdom) 5.625%, 9/15/2017 + #

77,000

 

 

 

77,035

Retail - 1.83%

 

 

 

500,000

 

The Neiman Marcus Group LLC. 7.125%, 6/01/2028

407,500

 

 

 

 

Venture Capital - 0.00%

 

25,000

 

Infinity Capital Group 7.00%, 12/31/49 + ^ †

0

 

 

 

 

TOTAL FOR CORPORATE BONDS (Cost $2,228,394) - 9.38%

        2,083,058

 

 

 

 

ESCROW NOTES - 0.00%

 

20,000

 

Mirant Corp. + ^ †

0

300,000

 

NewPage Corp. + ^ †

0

TOTAL FOR ESCROW NOTES (Cost $196,568) - 0.00%

                    0

 

 

 

 

MORTGAGE-BACKED SECURITIES - 0.45%

 

616,266

 

Federal Home Loan Mortgage Corp. Series 3756 Class IG 4.00%, 11/15/2037

3

650,339

 

GSR Mortgage Loan Trust Series 2005-5F Class B2 5.74085%, 6/25/2035 ~

100,453

TOTAL FOR MORTGAGE-BACKED SECURITIES (Cost $498,100) - 0.45%

          100,456

 

 

 

 

MUNICIPAL BONDS - 2.78%

 

 

 

 

 

Puerto Rico - 2.78%

 

50,000

 

Puerto Rico Public Buildings Authority Series U 5.00%, 7/01/2018 +

19,612

40,000

 

Puerto Rico Public Buildings Authority Series C 5.75%, 7/01/2019 +

15,690

55,000

 

Puerto Rico Public Buildings Authority Series N 5.50%, 7/01/2027 +

21,574

50,000

 

Puerto Rico Public Buildings Authority Series D 5.25%, 7/01/2036 +

19,612

410,000

 

Puerto Rico Public Buildings Authority Series N 5.00%, 7/01/2037 +

160,822

215,000

 

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue 4.85%, 8/01/2036 +

180,869

85,000

 

University of Puerto Rico Series P 5.00%, 6/01/2019

75,450

30,000

 

University of Puerto Rico Series P 5.00%, 6/01/2020

23,475

25,000

 

University of Puerto Rico Series P 5.00%, 6/01/2024

19,313

10,000

 

University of Puerto Rico Series P 5.00%, 6/01/2026

7,725

25,000

 

University of Puerto Rico Series P 5.00%, 6/01/2030

19,313

25,000

 

University of Puerto Rico Series Q 5.00%, 6/01/2030

19,313

15,000

 

University of Puerto Rico Series Q 5.00%, 6/01/2021

11,588

30,000

 

University of Puerto Rico Series Q 5.00%, 6/01/2036

23,175

TOTAL FOR MUNICIPAL BONDS (Cost $445,513) - 2.78%

          617,531

 

 

 

 

PREFERRED STOCKS - 2.29%

 

 

 

 

 

Government Agencies - 2.20%

 

4,500

 

Federal Home Loan Mortgage Corp. Series F 5.00%, Perpetual

42,750

9,500

 

Federal Home Loan Mortgage Corp. Series M 0.00%, Perpetual

87,875

1,000

 

Federal Home Loan Mortgage Corp. Series Q 0.00%, Perpetual **

9,450

25,000

 

Federal Home Loan Mortgage Corp. Series S 0.00%, Perpetual **

237,250

8,300

 

Federal Home Loan Mortgage Corp. Series V 5.57%, Perpetual

43,907

2,674

 

Federal Home Loan Mortgage Corp. Series W 5.66%, Perpetual

14,547

10,000

 

Federal Home Loan Mortgage Corp. Series X 6.02%, Perpetual

53,000

 

 

 

488,779

Insurance - 0.09%

 

 

10

 

MBIA Insurance Corp. 4.707%, Perpetual ^ #

20,000

 

 

 

 

Oil, Gas & Coal - 0.00%

 

3

 

GeoMet, Inc. Convertible Series A 12.50%, Perpetua **

0

 

 

 

 

TOTAL FOR PREFERRED STOCKS (Cost $1,099,288) - 2.29%

          508,779

 

 

 

 

RIGHTS - 0.70%

 

 

 

 

 

 

 

Oil, Gas & Coal - 0.70%

 

155,336

 

Seadrill Ltd. (United Kingdom)

155,336

 

 

 

 

TOTAL FOR RIGHTS (Cost $155,336) - 0.70%

          155,336

 

 

 

 

STRUCTURED NOTE - 5.38%

 

212

 

Heineken Holding NV Exp. 3/11/2019

1,194,211

 

 

 

 

TOTAL FOR STRUCTURED NOTE (Cost $1,217,516) - 5.38%

        1,194,211

 

 

 

 

WARRANTS - 0.03%

 

 

 

 

 

Insurance - 0.03%

 

 

5,700

 

FGL Holdings (Bermuda) Exp. 12/2022 (Notional Value $65,500)

6,669

 

 

 

 

TOTAL FOR WARRANTS (Cost $9,132) - 0.03%

              6,669

 

 

 

 

INVESTMENTS IN PURCHASED OPTIONS, AT VALUE (Premiums Paid $684,678) - 2.29%

          509,454

 

 

 

 

BANK DEPOSIT ACCOUNTS - 17.65%

 

150,314

 

Collateral Huntington Conservative Deposit Account 1.75% ** (b)

          150,314

3,771,878

 

Huntington Conservative Deposit Account 1.75% **

        3,771,878

TOTAL FOR BANK DEPOSIT ACCOUNTS - (Cost $3,922,192) - 17.65%

        3,922,192

 

 

 

 

TOTAL INVESTMENTS (Cost $22,804,662) *** - 91.50%

20,326,108

 

 

 

 

INVESTMENTS IN WRITTEN OPTIONS, AT VALUE (Premiums Received $205,534) - (0.62)%

        (138,156)

 

 

 

 

INVESTMENTS IN SECURITIES SOLD SHORT, AT VALUE (Proceeds $1,372,726) - (8.46)%

(1,878,859)

 

 

 

 

ASSETS IN EXCESS OF LIABILITIES, NET - 17.58%

3,904,694

 

 

 

 

NET ASSETS - 100.00%

$    22,213,787

 

 

 

 

* Non-income producing securities during the period.

 

** Variable rate security; the coupon rate shown represents the yield at June 30, 2018.

 

*** Refer to Note 10 for tax cost.

 

ADR - American Depositary Receipt.

 

(a) Subject to written option contracts.

 

(b) All or a portion of this security is held as collateral for securities sold short. Total value of collateral for securities sold short is $3,107,136.

 

+ Default Bonds

 

 

 

Level 2 Security

 

 

 

~ Variable Rate Security. The coupon is based on an underlying pool of loans.

 

^ Indicates a fair valued security. Total market value for fair valued securities is $724,219 representing 3.26% of net assets and Level 3 securities.

 

# Indicates securities that may be sold to "qualified institutional buyers" pursuant to the conditions of Rule 144A under the Securities Act of 1933, as amended, is $1,224,658 representing 5.51% of net assets.

 

† Indicates an illiquid security. Total market value for illiquid securities is $1,148,524, representing 5.16% of net assets.

 

Principal denominated in Euros.

 

The accompanying notes are an integral part of these financial statements.

 





 

 

 

 

 

 

 

Camelot Fund

Schedule of Purchased Options

June 30, 2018

 

 

 

 

 

 

 

CALL OPTIONS - 1.20% *

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

5,500

 

Altaba, Inc.

$       440,000

$        80.00

1/18/2019

$         22,000

 

 

 

 

 

 

 

8,000

 

Altaba, Inc.

600,000

75.00

10/19/2018

34,000

 

 

 

 

 

 

 

10,000

 

Arconic, Inc.

200,000

20.00

1/17/2020

19,500

 

 

 

 

 

 

 

30,000

 

Arconic, Inc.

600,000

20.00

1/18/2019

24,000

 

 

 

 

 

 

 

20,000

 

Arconic, Inc.

460,000

23.00

7/20/2018

800

 

 

 

 

 

 

 

10,000

 

AT&T, Inc.

340,000

34.00

1/18/2019

9,500

 

 

 

 

 

 

 

25,000

 

Colgate-Palmolive Co.

1,875,000

75.00

8/17/2018

3,500

 

 

 

 

 

 

 

11,500

 

Comcast Corp. Class A

402,500

35.00

9/21/2018

12,305

 

 

 

 

 

 

 

10,000

 

The Hain Celestial Group, Inc.

300,000

30.00

8/17/2018

17,500

 

 

 

 

 

 

 

16,000

 

Newell Brands, Inc.

448,000

28.00

1/18/2019

29,600

 

 

 

 

 

 

 

6,000

 

NXP Semiconductors NV (Netherlands)

660,000

110.00

7/20/2018

33,600

 

 

 

 

 

 

 

7,000

 

NXP Semiconductors NV (Netherlands)

770,000

110.00

8/17/2018

54,600

 

 

 

 

 

 

 

25,000

 

The Proctor & Gamble Co.

2,062,500

82.50

7/20/2018

3,000

 

 

 

 

 

 

 

25,000

 

The Proctor & Gamble Co.

2,312,500

92.50

9/21/2018

2,250

 

 

 

 

 

 

 

 

 

Total Call Options (Premiums Paid $452,467) - 1.20%

 

 

 

$       266,155

 

 

 

 

 

 

 

PUT OPTIONS - 1.09% *

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

6,000

 

Dell Technologies, Inc. Class V

450,000

75.00

10/19/2018

$         20,400

 

 

 

 

 

 

 

20,000

 

Invesco CurrencyShares Euro Currency Trust

2,240,000

112.00

9/21/2018

27,000

 

 

 

 

 

 

 

46,700

 

Sirius XM Holdings, Inc.

326,900

7.00

1/18/2019

35,959

 

 

 

 

 

 

 

14,000

 

SPDR S&P 500 ETF Trust

3,780,000

270.00

9/21/2018

87,080

 

 

 

 

 

 

 

4,000

 

SPDR S&P 500 ETF Trust

1,104,000

276.00

9/21/2018

34,160

 

 

 

 

 

 

 

3,000

 

Vmware, Inc.

465,000

155.00

7/20/2018

38,700

 

 

 

 

 

 

 

 

 

Total Put Options (Premiums Paid $232,211) - 1.09%

 

 

 

$       243,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PURCHASED OPTIONS (Premiums Paid $684,678) - 2.29%

 

 

$       509,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

Level 2 Security

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 





 

 

 

 

 

 

 

Camelot Fund

Schedule of Written Options

June 30, 2018

 

 

 

 

 

 

 

CALL OPTIONS - 0.58%*

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

13,500

 

Altaba, Inc.

1,113,750

82.50

7/20/2018

$       2,025

 

 

 

 

 

 

 

15,000

 

Brookdale Senior Living, Inc.

135,000

9.00

7/20/2018

7,500

 

 

 

 

 

 

 

25,000

 

Colgate-Palmolive Co.

2,000,000

80.00

8/17/2018

2,125

 

 

 

 

 

 

 

6,000

 

Dell Technologies, Inc. Class V

540,000

90.00

10/19/2018

38,400

 

 

 

 

 

 

 

20,000

 

Invesco CurrencyShares Euro Currency Trust

2,240,000

112.00

9/21/2018

37,000

 

 

 

 

 

 

 

6,000

 

NXP Semiconductors NV (Netherlands)

750,000

125.00

7/20/2018

4,200

 

 

 

 

 

 

 

7,000

 

NXP Semiconductors NV (Netherlands)

875,000

125.00

8/17/2018

9,100

 

 

 

 

 

 

 

46,700

 

Sirius XM Holdings, Inc.

326,900

7.00

1/18/2019

22,416

 

 

 

 

 

 

 

3,000

 

Vmware, Inc.

465,000

155.00

7/20/2018

6,690

 

 

 

 

 

 

 

 

 

Total Call Options (Premiums Received $183,660) - 0.58%

 

 

$    129,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PUT OPTIONS - 0.04%*

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Underlying Security

Notional Amount

Exercise Price

Expiration

Fair Value

 

 

 

 

 

 

 

6,000

 

Dell Technologies, Inc. Class V

360,000

60.00

10/19/2018

$       4,950

 

 

 

 

 

 

 

2,500

 

NXP Semiconductors NV (Netherlands)

225,000

90.00

8/17/2018

3,750

 

 

 

 

 

 

 

 

 

Total Put Options (Premiums Received $21,874) - 0.04%

 

 

 

$       8,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL WRITTEN OPTIONS (Premiums Received $205,534) - 0.62%

 

 

 

$    138,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

Level 2 Security

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 





 

 

 

 

 

 

Camelot Fund

 

 

 

Schedule of Securities Sold Short

 

 

 

June 30, 2018

 

 

 

 

 

Shares

 

 

Value

 

 

 

 

COMMON STOCKS * - 8.46%

 

 

 

 

 

Cable & Other Pay Television Services

 

4,452

 

Liberty Broadband Corp.

$            337,105

 

 

 

 

Services-Business Services

 

8,310

 

Alibaba Group Holding Ltd. ADR

1,541,754

 

 

 

 

 

 

 

 

SECURITIES SOLD SHORT (Proceeds $1,372,726) - 8.46%

$          1,878,859

 

 

 

 

* Non-income producing securities during the period.

 

ADR - American Depositary Receipt.

 

The accompanying notes are an integral part of these financial statements.

 




 

 

 

 

 

 

 

Frank Funds

Statements of Assets and Liabilities

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value Fund

 

Baldwin Fund

 

Camelot Fund

Assets:

 

 

 

 

 

 

       Investments in Securities, at Value (Cost $16,128,274, $2,493,832 and $22,804,662, respectively)

$  16,641,811

 

$      2,472,621

 

$     20,326,108

       Cash

 

            39,568

 

                     40

 

                 2,997

       Cash Denominated in Foreign Currency

              6,130

 

                       -

 

                        -

       Deposit with Broker for Securities Sold Short and Options Written

                     -

 

                       -

 

         1,551,052

       Receivables:

 

 

 

 

 

               Dividends and Interest

            28,921

 

                4,766

 

               41,548

               Due from Adviser

                     -

 

             13,686

 

                        -

               Shareholder Subscriptions

                 144

 

                       -

 

                 1,530

               Portfolio Securities Sold

         118,601

 

             39,134

 

         2,548,897

               Prepaid Expenses

                     -

 

                   579

 

               24,726

                     Total Assets

    16,835,175

 

        2,530,826

 

       24,496,858

Liabilities:

 

 

 

 

 

 

       Covered Call Options Written at Value (Premiums received $0, $80,086 and $205,534, respectively)

                     -

 

85,220

 

138,156

       Securities Sold Short, at Value (Proceeds $0, $0 and $1,372,726, respectively)

                     -

 

                       -

 

1,878,859

       Payables:

 

 

 

 

 

 

              Advisory Fees

            14,051

 

                       -

 

                 4,358

              Administrative Fees

              3,548

 

                3,000

 

                 5,740

              Shareholder Redemptions

                 757

 

                       -

 

               11,797

              Portfolio Securities Purchased

                     -

 

                   160

 

            191,202

              Chief Compliance Officer Fees

                     -

 

                       -

 

                 1,452

              Distribution Fees

            13,509

 

                     67

 

                 3,539

              Accrued Expenses

                     -

 

             15,811

 

               47,968

                     Total Liabilities

            31,865

 

           104,258

 

         2,283,071

 

 

 

 

 

 

 

Net Assets

 

$  16,803,310

 

$      2,426,568

 

$     22,213,787

 

 

 

 

 

 

 

Net Assets Consist of:

 

 

 

 

 

    Paid In Capital

$  15,900,045

 

$      3,372,452

 

$     32,088,812

    Undistributed Net Investment Income (Loss)

                     -

 

42

 

            (78,934)

    Accumulated Realized Gain (Loss) on Investments

         389,709

 

        (919,581)

 

      (6,878,782)

    Unrealized Appreciation (Depreciation) in Value of Investments:

 

 

 

 

 

        Investments

         513,537

 

          (21,211)

 

      (2,478,554)

        Written Option Contracts

                     -

 

             (5,134)

 

               67,378

        Securities Sold Short

                     -

 

                       -

 

         (506,133)

        Foreign Currency Transactions

                   19

 

                       -

 

                        -

Net Assets

 

$  16,803,310

 

$      2,426,568

 

$     22,213,787

Shares outstanding (unlimited number of shares authorized with no par value)

 

 

 

           353,308

 

 

Net Asset Value Per Share

 

 

$                6.87

 

 

Redemption Price Per Share ($6.87 x 0.98) *

 

 

 

$                6.73

 

 

 

 

 

 

 

 

 

Investor Class:

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

$  10,081,666

 

 

 

 

Shares outstanding (unlimited number of shares authorized with no par value)

         811,428

 

 

 

 

Net Asset Value

$            12.42

 

 

 

 

Redemption Price Per Share ($12.42 x 0.98) *

$            12.17

 

 

 

 

 

 

 

 

 

 

 

Class A:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

$     10,022,365

Shares outstanding (unlimited number of shares authorized with no par value)

 

 

 

 

            731,405

Net Asset Value

 

 

 

 

$               13.70

Offering Price Per Share ($13.70/ 94.50%) (Note 2)

 

 

 

 

$               14.50

 

 

 

 

 

 

 

Class C:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

$    1,273,002

 

 

 

 

Shares outstanding (unlimited number of shares authorized with no par value)

         109,386

 

 

 

 

Net Asset Value

$            11.64

 

 

 

 

Redemption Price Per Share ($11.64 x 0.98) *

$            11.41

 

 

 

 

 

 

 

 

 

 

 

Institutional Class:

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

$    5,448,642

 

 

 

$     12,191,422

Shares outstanding (unlimited number of shares authorized with no par value)

         432,789

 

 

 

            881,803

Net Asset Value

$            12.59

 

 

 

$               13.83

Redemption Price Per Share ($12.59 x 0.98) *

$            12.34

 

 

 

 

 

 

 

 

 

 

 

* The Funds will impose a 2% redemption fee on shares redeemed within 5 business days of purchase for the Value and Baldwin Funds.

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 




 

 

 

 

 

Frank Funds

Statements of Operations

For the year ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value Fund

Baldwin Fund

Camelot Fund

Investment Income:

 

 

 

       Dividends (a)

$          79,892

$            69,483

$          138,377

       Interest

 

          198,999

                3,865

              33,854

            Total Investment Income

          278,891

              73,348

            172,231

 

 

 

 

 

Expenses:

 

 

 

 

       Advisory Fees

          223,581

              11,362

            303,759

       Administration Fees

            56,460

              36,452

              35,650

       Accounting Fees

                      -

                        -

              30,360

       Servicing Account Fees

                      -

                        -

              40,537

       Transfer Agent Fees

                      -

              13,078

              55,279

       Chief Compliance Officer Fees

                      -

                        -

              33,627

       Audit Fees

                      -

              13,498

              14,920

       Distribution Fees

            50,660

              25,182

              50,917

       Legal Fees

                      -

                    920

              36,898

       Custody Fees

                      -

              21,366

              16,658

       Trustee Fees

                      -

                        -

              18,590

       Printing and Mailing Expense

                      -

                      39

              11,555

       Interest Expense

                      -

                        -

                6,252

       Miscellaneous Fees

                      -

                    212

                2,625

       Insurance Fees

                      -

                        -

              28,562

       Registration Fees

                      -

                1,573

              44,807

            Total Expenses

          330,701

            123,682

            730,996

                 Fees Waived and Reimbursed by the Adviser

                      -

           (79,497)

         (256,096)

            Net Expenses

          330,701

              44,185

            474,900

 

 

 

 

 

Net Investment Income (Loss)

         (51,810)

              29,163

         (302,669)

 

 

 

 

 

Realized Gain (Loss) on:

 

 

 

       Investments

       1,134,515

         (185,295)

            119,807

       Written Options

                      -

            124,030

            373,044

       Securities Sold Short

                      -

                        -

         (176,213)

       Foreign Currency Transactions

                   (5)

                        -

              35,547

            Net Realized Gain (Loss) on Investments, Written Options, Securities Sold Short and Foreign Currency Transactions

       1,134,510

           (61,265)

            352,185

 

 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

 

 

       Investments

    (1,311,929)

              40,294

         2,124,344

       Written Options

                      -

                5,532

            173,028

       Securities Sold Short

                      -

                        -

         (265,034)

       Foreign Currency Transactions

                    15

                        -

             (3,871)

           Net Change in Unrealized Appreciation (Depreciation) on Investments, Options, Securities Sold Short and Foreign Currency Transactions

    (1,311,914)

              45,826

         2,028,467

 

 

 

 

 

Realized and Unrealized Gain (Loss) on Investments, Options, Securities Sold Short and Foreign Currency Transactions

       (177,404)

           (15,439)

         2,380,652

 

 

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 $    (229,214)

$            13,724

$      2,077,983

 

 

 

 

 

(a) Foreign withholding taxes on dividends/tax reclaims/interest.

 $        (1,365)

 $             (324)

 $        (14,800)

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 




 

 

 

 

Value Fund

Statements of Changes in Net Assets

 

 

 

 

 

 

 

 

 

 

            Years Ended

 

 

6/30/2018

6/30/2017

Increase (Decrease) in Net Assets From Operations:

 

 

    Net Investment Loss

 $         (51,810)

 $      (226,400)

    Net Realized Gain (Loss) on:

 

 

       Investments

         1,134,515

            548,800

       Foreign Currency Transactions

                      (5)

                   (60)

    Unrealized Appreciation (Depreciation) on:

 

 

       Investments

      (1,311,929)

         (580,852)

       Foreign Currency Transactions

                       15

                        9

    Net Decrease in Net Assets Resulting from Operations

          (229,214)

         (258,503)

 

 

 

 

Distributions to Shareholders:

 

 

    Net Investment Income

                         -

                        -

    Realized Gains

                         -

         (815,809)

    Total Distributions Paid to Shareholders

                         -

         (815,809)

 

 

 

 

Capital Share Transactions

      (8,561,352)

      (3,538,789)

 

 

 

 

Total Decrease in Net Assets

      (8,790,566)

      (4,613,101)

 

 

 

 

Net Assets:

 

 

 

Beginning of Year

       25,593,876

      30,206,977

 

 

 

 

End of Year (Including Undistributed Net Investment Loss of $0 and ($89,184), respectively)

$     16,803,310

$    25,593,876

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 




 

 

 

 

Baldwin Fund

Statements of Changes in Net Assets

 

 

 

 

 

 

 

 

 

 

         Years Ended

 

 

6/30/2018

6/30/2017

Increase (Decrease) in Net Assets From Operations:

 

 

    Net Investment Income (Loss)

$        29,163

 $         (5,379)

    Net Realized Gain (Loss) on:

 

 

       Investments

     (185,295)

       (221,101)

       Written Options

        124,030

          108,394

    Unrealized Appreciation (Depreciation) on:

 

 

       Investments

          40,294

             78,236

       Written Options

             5,532

            (2,988)

    Net Increase (Decrease) in Net Assets Resulting from Operations

          13,724

          (42,838)

 

 

 

 

Distributions to Shareholders:

 

 

    Net Investment Income

       (25,347)

                      -

    Realized Gains

                    -

                      -

    Return of Capital

                    -

                      -

    Total Distributions Paid to Shareholders

       (25,347)

                      -

 

 

 

 

Capital Share Transactions

     (182,078)

       (366,642)

 

 

 

 

Total Decrease in Net Assets

     (193,701)

       (409,480)

 

 

 

 

Net Assets:

 

 

 

Beginning of Year

     2,620,269

       3,029,749

 

 

 

 

End of Year (Including Undistributed Net Investment Income (Loss) of $42 and $(3,775), respectively)

$   2,426,568

$     2,620,269

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 




 

 

 

 

Camelot Fund

Statements of Changes in Net Assets

 

 

 

 

 

 

 

 

 

 

             Years Ended

 

 

6/30/2018

6/30/2017

Increase (Decrease) in Net Assets From Operations:

 

 

    Net Investment Income (Loss)

 $      (302,669)

$          402,534

    Net Realized Gain (Loss) on:

 

 

       Investments

             119,807

            626,325

       Written Options

             373,044

            884,772

       Securities Sold Short

          (176,213)

           (48,427)

       Foreign Currency Transactions

               35,547

           (10,745)

    Unrealized Appreciation (Depreciation) on:

 

 

       Investments

         2,124,344

         2,033,033

       Written Options

             173,028

         (236,444)

       Securities Sold Short

          (265,034)

         (241,099)

       Foreign Currency Transactions

              (3,871)

                4,260

    Net Increase in Net Assets Resulting from Operations

         2,077,983

         3,414,209

 

 

 

 

Distributions to Shareholders:

 

 

    Net Investment Income:

 

 

        Class A

 

          (344,555)

           (70,505)

        Class C *

 

            (75,017)

             (5,529)

        Institutional Class

          (448,777)

           (83,962)

    Total Distributions Paid to Shareholders

          (868,349)

         (159,996)

 

 

 

 

Capital Share Transactions

      (8,696,939)

      (7,444,709)

 

 

 

 

Total Decrease in Net Assets

      (7,487,305)

      (4,190,496)

 

 

 

 

Net Assets:

 

 

 

Beginning of Year

       29,701,092

      33,891,588

 

 

 

 

End of Year (Including Undistributed Net Investment Loss of ($78,934) and $452,422, respectively)

$     22,213,787

$    29,701,092

 

 

 

 

* For the Period July 1, 2017 to June 22, 2018. Class C merged into Class A on June 22, 2018.

 

 

The accompanying notes are an integral part of these financial statements.

 

 




 

 

 

 

 

 

 

 

 

 

 

 

Value Fund - Investor Class

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

 

6/30/2017

 

6/30/2016

 

6/30/2015

 

6/30/2014

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$      12.61

 

$      13.12

 

$     14.17

 

$     14.76

 

$     13.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

 

 

 

 

 

  Net Investment Loss *

        (0.03)

 

        (0.10)

 

      (0.13)

 

      (0.14)

 

      (0.08)

 

  Net Gain (Loss) on Securities (Realized and Unrealized)

        (0.16)

 

        (0.03)

 

        0.05

 

        0.15

 

        2.42

 

     Total from Investment Operations

        (0.19)

 

        (0.13)

 

      (0.08)

 

        0.01

 

        2.34

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

 

 

 

 

 

  Net Investment Income

                  -

 

                  -

 

                -

 

                -

 

                -

 

  Realized Gains

                  -

 

        (0.38)

 

      (0.97)

 

      (0.60)

 

      (0.96)

 

     Total from Distributions

                  -

 

        (0.38)

 

      (0.97)

 

      (0.60)

 

      (0.96)

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption Fees ***

                  -

 

                  -

 

                -

 

                -

(a)

                -

(a)

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$      12.42

 

$      12.61

 

$     13.12

 

$     14.17

 

$     14.76

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Return **

     (1.51)%

 

     (1.01)%

 

   (0.39)%

 

   (0.06)%

 

17.60%

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$     10,082

 

$     16,945

 

$   19,038

 

$   19,957

 

$   24,572

 

  Ratio of Expenses to Average Net Assets

1.49%

 

1.49%

 

1.49%

 

1.49%

 

1.49%

 

  Ratio of Net Investment Income (Loss) to Average Net Assets

     (0.27)%

 

     (0.77)%

 

   (1.00)%

 

   (0.95)%

 

   (0.54)%

 

  Portfolio Turnover

68.13%

 

60.96%

 

51.13%

 

22.93%

 

81.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.

 

 

 

 

 

 

 

** Assumes reinvestment of dividends.

 

 

 

 

 

 

 

 

 

 

*** The Fund will impose a 2% redemption fee on shares redeemed within 5 business days of purchase.

 

 

 

 

 

 

 

 

 

(a)  Amount calculated is less that $0.005

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

Value Fund - Class C

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

 

6/30/2017

6/30/2016

6/30/2015

6/30/2014

 

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$      11.90

 

$      12.49

$      13.64

$      14.33

$      13.11

 

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

 

  Net Investment Loss *

       (0.12)

 

       (0.19)

       (0.23)

       (0.24)

       (0.18)

  Net Gain (Loss) on Securities (Realized and Unrealized)

       (0.14)

 

       (0.02)

          0.05

          0.15

          2.36

     Total from Investment Operations

         (0.26)

 

         (0.21)

       (0.18)

       (0.09)

          2.18

 

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

 

  Net Investment Income

                  -

 

                  -

                  -

                  -

                  -

  Realized Gains

                  -

 

       (0.38)

       (0.97)

       (0.60)

       (0.96)

     Total from Distributions

                  -

 

       (0.38)

       (0.97)

       (0.60)

       (0.96)

 

 

 

 

 

 

 

 

Redemption Fees ***

                  -

 

                  -

                  -

                  -

                  -

 

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$      11.64

 

$      11.90

$      12.49

$      13.64

$      14.33

 

 

 

 

 

 

 

 

Total Return **

    (2.18)%

 

    (1.71)%

    (1.16)%

    (0.78)%

16.69%

 

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$      1,273

 

$      2,232

$      3,718

$      3,728

$      3,281

  Ratio of Expenses to Average Net Assets

2.24%

 

2.24%

2.24%

2.24%

2.24%

  Ratio of Net Investment Loss to Average Net Assets

    (1.01)%

 

    (1.54)%

    (1.75)%

    (1.71)%

    (1.30)%

  Portfolio Turnover

68.13%

 

60.96%

51.13%

22.93%

81.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.

 

 

** Assumes reinvestment of dividends.

 

 

 

 

 

 

*** The Fund will impose a 2% redemption fee on shares redeemed within 5 business days of purchase.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 

 




 

 

 

 

 

 

 

 

Value Fund - Institutional Class

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

 

6/30/2017

6/30/2016

6/30/2015

6/30/2014

 

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$       12.75

 

$       13.23

$       14.24

$       14.79

$       13.38

 

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

 

  Net Investment Loss *

             -   

(a)

        (0.07)

        (0.10)

        (0.10)

        (0.05)

  Net Gain (Loss) on Securities (Realized and Unrealized)

        (0.16)

 

        (0.03)

           0.06

           0.15

           2.42

     Total from Investment Operations

        (0.16)

 

        (0.10)

        (0.04)

           0.05

           2.37

 

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

 

  Net Investment Income

 -

 

 -

 -

 -

 -

  Realized Gains

                   -

 

        (0.38)

        (0.97)

        (0.60)

        (0.96)

     Total from Distributions

                   -

 

        (0.38)

        (0.97)

        (0.60)

        (0.96)

 

 

 

 

 

 

 

 

Redemption Fees ***

                   -

(a)

                   -

                   -

                   -

                   -

 

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$       12.59

 

$       12.75

$       13.23

$       14.24

$       14.79

 

 

 

 

 

 

 

 

Total Return **

     (1.25)%

 

     (0.77)%

     (0.09)%

0.21%

17.83%

 

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$       5,449

 

$       6,417

$       7,451

$       8,870

$     23,630

  Ratio of Expenses to Average Net Assets

1.24%

 

1.24%

1.24%

1.24%

1.24%

  Ratio of Net Investment Income (Loss) to Average Net Assets

0.02%

 

     (0.52)%

     (0.75)%

     (0.69)%

     (0.31)%

  Portfolio Turnover

68.13%

 

60.96%

51.13%

22.93%

81.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.

 

** Assumes reinvestment of dividends.

 

 

 

 

 

 

*** The Fund will impose a 2% redemption fee on shares redeemed within 5 business days of purchase.

 

 

 

(a)  Amount calculated is less that $0.005

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 

 




 

 

 

 

 

 

 

Baldwin Fund

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

6/30/2017

6/30/2016

6/30/2015

6/30/2014

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$            6.90

$            7.01

$            7.33

$            7.64

$          7.44

 

 

 

 

 

 

 

Income From Investment Operations:

 

 

 

 

 

  Net Investment Income (Loss) *

              0.08

           (0.01)

              0.02

              0.16

            0.14

  Net Gain (Loss) on Securities (Realized and Unrealized)

           (0.04)

           (0.10)

           (0.28)

           (0.31)

            0.19

     Total from Investment Operations

              0.04

           (0.11)

           (0.26)

           (0.15)

            0.33

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

  Net Investment Income

           (0.07)

                  -

           (0.05)

           (0.16)

          (0.13)

  Realized Gains

                  -

                  -

                  -

                  -

                -

  Return of Capital

                  -

                  -

           (0.01)

                  -

                -

     Total from Distributions

           (0.07)

                  -

           (0.06)

           (0.16)

          (0.13)

 

 

 

 

 

 

 

Redemption Fees ***

                  -

                  -

                  -

                  -

                -

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$            6.87

$            6.90

$            7.01

$            7.33

$          7.64

 

 

 

 

 

 

 

Total Return **

           0.59%

        (1.57)%

        (3.49)%

        (1.95)%

         4.51%

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$          2,427

$          2,620

$          3,030

$          3,432

$         3,495

Before Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets

4.90%

4.46%

4.88%

4.62%

4.17%

  Ratio of Net Investment Income (Loss) to Average Net Assets

        (1.99)%

        (2.90)%

        (2.88)%

        (0.72)%

       (0.62)%

After Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets

1.75%

1.75%

1.75%

1.75%

1.75%

  Ratio of Net Investment Income to Average Net Assets

1.16%

        (0.19)%

0.25%

2.14%

1.80%

  Portfolio Turnover

686.85%

372.87%

478.51%

660.84%

650.16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Per share net investment income has been determined on the basis of average shares outstanding during the period.

 

 

** Assumes reinvestment of dividends.

 

 

 

 

 

*** The Fund will impose a 2% redemption fee on shares redeemed within 5 business days of purchase.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 




 

 

 

 

 

 

 

Camelot Fund - Class A

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

6/30/2017

6/30/2016

6/30/2015

6/30/2014

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$      13.01

$      11.71

$      13.39

$      14.07

$      12.81

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

  Net Investment Income (Loss) *

       (0.17)

          0.16

       (0.01)

       (0.04)

          0.41

  Net Gain (Loss) on Securities (Realized and Unrealized)

          1.36

          1.21

       (0.65)

          0.21

          0.93

     Total from Investment Operations

          1.19

          1.37

       (0.66)

          0.17

          1.34

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

  Net Investment Income

       (0.50)

       (0.07)

              -

       (0.11)

       (0.01)

  Realized Gains

              -

              -

       (1.02)

       (0.74)

       (0.07)

     Total from Distributions

       (0.50)

       (0.07)

       (1.02)

       (0.85)

       (0.08)

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$      13.70

$      13.01

$      11.71

$      13.39

$      14.07

 

 

 

 

 

 

 

Total Return **

9.41%

11.70%

    (4.33)%

1.38%

10.47%

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$    10,022

$    12,548

$    14,363

$    31,817

$    53,035

Before Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets (a) (b)

3.04%

2.80%

2.41%

2.17%

2.15%

  Ratio of Net Investment Income (Loss) to Average Net Assets (a) (d)

    (2.35)%

0.49%

    (0.50)%

    (0.47)%

2.85%

After Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets (a) (c)

1.99%

1.99%

1.99%

1.99%

1.99%

  Ratio of Net Investment Income to Average Net Assets (a) (d)

    (1.30)%

1.30%

    (0.08)%

    (0.29)%

3.01%

  Portfolio Turnover

391%

326%

160%

237%

280%

 

 

 

 

 

 

 

* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.

 

 

 

** Assumes reinvestment of dividends.

 

 

 

 

 

(a) Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements.

 

 

 

These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred.

 

(b) Expenses before reductions (excluding dividend and interest expense for securities sold short) were 3.01%, 2.78%, 2.40%, 2.16%, and 2.14%

 

for the years ended June 30, 2018, 2017, 2016, 2015, and 2014, respectively.

 

 

 

 

 

(c) Expenses net of all reductions (excluding dividend and interest expense for securities sold short) were 1.97%, 1.98%,1.98%, 1.98%, and 1.98%

 

for the years ended June 30, 2018, 2017, 2016, 2015, and 2014, respectively.

 

 

 

 

 

(d) The net investment income (loss) ratios include dividends on short positions, if applicable.

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 




 

 

 

 

 

 

 

Camelot Fund - Institutional Class

Financial Highlights

Selected data for a share outstanding throughout each year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

6/30/2018

6/30/2017

6/30/2016

6/30/2015

6/30/2014

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Year

$      13.14

$      11.80

$      13.46

$      14.15

$      12.86

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

  Net Investment Income (Loss) *

       (0.14)

          0.19

          0.02

       (0.01)

          0.44

  Net Gain (Loss) on Securities (Realized and Unrealized)

          1.37

          1.23

       (0.66)

          0.21

          0.94

     Total from Investment Operations

          1.23

          1.42

       (0.64)

          0.20

          1.38

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

  Net Investment Income

       (0.54)

       (0.08)

              -

       (0.15)

       (0.02)

  Realized Gains

              -

              -

       (1.02)

       (0.74)

       (0.07)

     Total from Distributions

       (0.54)

       (0.08)

       (1.02)

       (0.89)

       (0.09)

 

 

 

 

 

 

 

Net Asset Value, at End of Year

$      13.83

$      13.14

$      11.80

$      13.46

$      14.15

 

 

 

 

 

 

 

Total Return **

9.71%

12.10%

    (4.15)%

1.61%

10.77%

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

  Net Assets at End of Year (Thousands)

$    12,191

$    13,890

$    14,953

$    75,420

$    59,474

Before Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets (a) (b)

2.80%

2.55%

2.16%

1.92%

1.90%

  Ratio of Net Investment Income (Loss) to Average Net Assets (a) (d)

    (2.15)%

0.74%

    (0.25)%

    (0.22)%

3.10%

After Reimbursement:

 

 

 

 

 

  Ratio of Expenses to Average Net Assets (a) (c)

1.74%

1.74%

1.74%

1.74%

1.74%

  Ratio of Net Investment Income to Average Net Assets (a) (d)

    (1.09)%

1.55%

0.17%

    (0.04)%

2.26%

  Portfolio Turnover

391%

326%

160%

237%

280%

 

 

 

 

 

 

 

* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.

 

 

 

** Assumes reinvestment of dividends.

 

 

 

 

 

(a) Expense waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements.

 

 

 

These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, had such reductions not occurred.

 

(b) Expenses before reductions (excluding dividend and interest expense for securities sold short) were 2.77%, 2.53%, 2.15%, 1.91%, and 1.89%

 

for the years ended June 30, 2018, 2017, 2016, 2015, and 2014, respectively.

 

 

 

 

 

(c) Expenses net of all reductions (excluding dividend and interest expense for securities sold short) were 1.71%, 1.73%, 1.73%, 1.73%, and 1.73%

 

for the years ended June 30, 2018, 2017, 2016, 2015, and 2014, respectively.

 

 

 

 

 

(d) The net investment income (loss) ratios include dividends on short positions, if applicable.

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 



FRANK FUNDS

NOTES TO FINANCIAL STATEMENTS

 JUNE 30, 2018


Note 1. Organization

Frank Funds (the “Trust”), is an open-end regulated investment company that was organized as an Ohio business trust on February 12, 2004. The Trust is permitted to issue an unlimited number of shares of beneficial interest of separate series, each series representing a distinct fund with its own investment objective and policies.  At present, there are three series authorized by the Trust, the Frank Value Fund (the “Value Fund”), the Leigh Baldwin Total Return Fund (the “Baldwin Fund”), and the Camelot Event Driven Fund (the “Camelot Fund”) (each a “Fund” and collectively the “Funds”).  Frank Capital Partners LLC (“FCP”) is the adviser to the Value Fund, Leigh Baldwin & Co., LLC (“LBC”) is the adviser to the Baldwin Fund, and Camelot Event Driven Advisors, LLC (“Camelot Advisors”) is the adviser to the Camelot Fund.


The Value Fund’s investment objective is to provide long-term capital appreciation. The Value Fund’s principal investment strategy is value investing. The Value Fund commenced operations on July 21, 2004.  The Baldwin Fund’s investment objective is to provide total return. The Baldwin Fund seeks to achieve its investment objective by purchasing equity securities (including common stock, shares of other investment companies and exchange traded funds) and selling covered calls to generate income to the Baldwin Fund.  The Baldwin Fund also utilizes put options in conjunction with the covered calls to limit the risk of ownership of the underlying equity securities.  The Baldwin Fund commenced operations on August 1, 2008.  The Camelot Fund’s investment objective is to provide long-term growth of capital. The Camelot Fund seeks to achieve its investment objective by investing in the securities of publicly traded companies involved in mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations, or similar events (“corporate reorganizations”). The Camelot Fund acquired all of the assets and liabilities of the Quaker Event Arbitrage Fund (“Predecessor Fund”), a series of Quaker Investment Trust, in a tax-free reorganization on June 22, 2018. In connection with this acquisition, Class A, Class C and Institutional Class shares of the Predecessor Fund were exchanged for Class A, Class A and Institutional Class shares of the Fund, respectively. The Camelot Fund commenced operations on June 7, 2010 in conjunction with the reorganization of the Pennsylvania Avenue Event Driven Fund (“Event Driven Fund”). The predecessor to the Predecessor Fund, the Pennsylvania Avenue Event Driven Fund, commenced operations on November 21, 2003. Class C merged into Class A on June 22, 2018.


The Value Fund currently has 3 classes of shares; Investor Class shares, Class C shares, and Institutional Class shares. The share classes vary in distribution (12b-1) fee accruals and minimum initial investment required.  


The Camelot Fund currently has 2 classes of shares; Class A shares and Institutional shares. Class A shares are charged a front-end sales charge and a distribution and servicing fee; and Institutional Class shares bear no front-end sales charge or CDSC, but have higher minimum investment thresholds.


Note 2. Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements.  The Funds are each a series of an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.


Securities Valuations - All investments in securities are recorded at their estimated fair value, as described in Note 3.


Share Valuation - The price (net asset value) of the shares of each Fund is normally determined as of 4:00 p.m., Eastern time on each day the Funds are open for business and on any other day on which there is sufficient trading in the Funds’ securities to materially affect the net asset value. The Funds are normally open for business on every day except Saturdays, Sundays and the following holidays: New Year’s Day, Martin Luther King Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.


Short Sales of Investments - Certain Funds may make short sales of investments, which are transactions in which a Fund sells a security it does not own in anticipation of a decline in the fair value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing it at the market price at the time of replacement. The broker retains the proceeds of short sales to the extent necessary to meet margin requirements until the short position is closed out.

 

If a security pays a dividend while the Fund holds it short, the Fund will need to pay the dividend to the original owner of the security. Since the Fund borrowed the shares and sold them to a third party, the third party will receive the dividend from the security and the Fund will pay the original owner the dividend directly. The Fund is not entitled to the dividend because it does not own the shares. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale.


Futures Contracts - Certain Funds may enter into financial futures contracts, to the extent permitted by their investment policies and objectives, for bona fide hedging and other permissible risk management purposes including protecting against anticipated changes in the value of securities a Fund intends to purchase. Upon entering into a financial futures contract, a Fund is required to deposit cash or securities as initial margin.

 

Additional securities are also segregated as collateral up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund, depending on the fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts. The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

 

Foreign Currency Transactions - Securities and other assets and liabilities denominated in foreign currencies are converted each business day into U.S. dollars based on the prevailing rates of exchange. Purchases and sales of portfolio securities and income and expenses are converted into U.S. dollars on the respective dates of such transactions.

 

Gains and losses resulting from changes in exchange rates applicable to foreign securities are not reported separately from gains and losses arising from movements in securities prices.

 

Net realized foreign exchange gains and losses include gains and losses from sales and maturities of foreign currency exchange contracts, gains and losses realized between the trade and settlement dates of foreign securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes on the Funds’ books and the U.S. dollar equivalent of the amounts actually received. Net unrealized foreign exchange gains and losses include gains and losses from changes in the fair value of assets and liabilities denominated in foreign currencies other than portfolio securities, resulting from changes in exchange rates.

 

Forward Foreign Currency Contracts - Certain Funds may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.


Redemption Fee - To discourage short-term trades by investors, the Value and Baldwin Funds will impose a redemption fee of 2.00% of the total redemption amount (calculated at market value) if shares are redeemed within five business days of purchase. There was $100 of redemption fees collected for the Value Fund during the year ended June 30, 2018.


Security Transactions Timing - Security transactions are recorded on the dates transactions are entered into (the trade dates).  Dividend income and distributions to shareholders are recognized on the ex-dividend date.  Interest income is recognized on an accrual basis.  The Funds use the identified cost basis in computing gain or loss on sale of investment securities.  Discounts and premiums on securities purchased are amortized over the life of the respective securities. Withholding taxes on foreign dividends are provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.


Income Taxes - The Funds intend to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying, the Funds will not be subject to federal income taxes to the extent that they distribute substantially all of their net investment income and any realized capital gains. It is the Funds’ policy to distribute annually, prior to the end of the calendar year, dividends sufficient to satisfy excise tax requirements of the Internal Revenue Service.  This Internal Revenue Service requirement may cause an excess of distributions over the book year-end accumulated income.


In addition, accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Funds to analyze all open tax years, fiscal years 2015-2018, as defined by IRS statue of limitations for all major industries, including federal tax authorities and certain tax authorities.  As of and during the year ended June 30, 2018, the Funds did not have a liability for any unrecognized tax benefits.  The Funds have no examination in progress and are not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.  


Distributions to Shareholders - The Value Fund and Camelot Fund intend to distribute to their shareholders substantially all of their net realized capital gains and net investment income, if any, at year-end; the Baldwin Fund distributes quarterly.  Distributions will be recorded on ex-dividend date.


Foreign Currency - Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based on the exchange rate of such currencies against U.S. dollars on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts at the exchange rate in effect on the respective dates of such transactions.


The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held.  Such fluctuations are included with the net realized and unrealized gain or loss from investments.


Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.


Derivative Transactions - The Funds may invest in put and call options.  When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written.  Premiums received from writing options that expire unexercised are treated by the Funds on the expiration date as realized gains.  The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss.  If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining if the Fund has a realized gain or loss.  If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund.  The Fund(s) as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.


The Camelot Fund may invest in structured notes.  A structured note is a type of derivative security for which the amount of principal repayments and/or interest payments is based upon the movement of one or more “factors.”  The impact of the movements of these factors may increase or decrease through the use of multipliers or deflators.  Structured notes may be designed to have particular quality and maturity characteristics and may vary from money market quality to below investment grade.


The Camelot Fund may also invest in warrants.  Warrants provide the Camelot Fund with exposure and potential gains upon equity appreciation of the underlying company’s share price. The value of a warrant has two components: time value and intrinsic value. A warrant has a limited life and expires on a certain date. As the expiration date of a warrant approaches, the time value of a warrant will decline. In addition, if the stock underlying the warrant declines in price, the intrinsic value of an in-the-money warrant will decline. Further, if the price of the stock underlying the warrant does not exceed the strike price of the warrant on the expiration date, the warrant will expire worthless. As a result, the Camelot Fund could potentially lose its entire investment in a warrant.  See Note 8 for additional information on derivative transactions in the Funds.


Share class accountingInvestment income, common expenses and realized/unrealized gains (losses) on investments are allocated to the three classes of shares of the Value Fund on the basis of the daily net assets of each class. Investment income, common expenses and realized/unrealized gains (losses) on investments are allocated to the two classes of shares of the Camelot Fund on the basis of the daily net assets of each class.  Fees relating to a specific class are charged directly to that share class.


Reclassification of Capital Accounts – U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. The reclassifications have no effect on net assets or net assets per share. For the year ended June 30, 2018, the following table shows the reclassifications made:


Fund

Undistributed Accumulated Net Investment Income (Loss)

Accumulated Net

Realized Gain/(Loss)

Paid-in-Capital

Value Fund

$140,995

$              -

$(140,995)

Camelot Fund

$639,662

$(639,662)

$              -


Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period.  Actual results could differ from those estimates.


Subsequent events: Management has evaluated the impact of all subsequent events on the Funds through the issuance date of these financial statements and has noted no such events requiring disclosure.


Note 3. Securities Valuations


Processes and Structure

The Trust’s Board of Trustees has adopted guidelines for valuing securities including in circumstances in which market quotes are not readily available and has delegated to the respective adviser the responsibility for determining fair value prices, subject to review by the Board of Trustees.


In accordance with the Trust’s good faith pricing guidelines, the respective adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above.  No single standard for determining fair value exists since fair value depends upon the circumstances of each individual case.  As a general principle, the current fair value of an issue of securities being valued by the adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.  Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.


Hierarchy of Fair Value Inputs

The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:


·

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.


·

Level 2. Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.


·

Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.


The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.


The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.


A Fund may hold securities, some of which are classified as Level 3 investments (as defined below). Level 3 investments have significant unobservable inputs, as they trade infrequently. In determining the fair value of these investments, management uses the market approach which includes as the primary input the capital balance reported; however, adjustments to the reported capital balance may be made based on various factors, including, but not limited to, the attributes of the interest held, including the rights and obligations, and any restrictions or illiquidity of such interests, and the fair value of these securities.


Fair Value Measurements

A description of the valuation techniques applied to the company's major categories of assets and liabilities measured at fair value on a recurring basis follows.


Equity securities (common stock, closed-end and exchange traded funds). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as american depositary receipts, financial futures, exchange traded funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.

Debt and other fixed - income securities are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board.


U.S. government obligations - U.S. government securities are normally valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. U.S. government securities are categorized in Level 1 or Level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities.


Short term investments - Short term investments are valued using amortized cost, which approximates fair value.  These securities will be categorized in Level 1 of the fair value hierarchy.


Derivative instruments (structured notes, warrants and options) – Derivative transactions which are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Derivative transactions traded on inactive markets or valued by reference to similar instruments are categorized in Level 2 of the fair value hierarchy. Options are valued at the last sales prices on the valuation date if the last sales price is between the closing bid and asked prices.  Otherwise, options are valued at the closing bid price. These securities will be categorized in Level 2 of the fair value hierarchy if valued at other than closing price.


The following tables summarize the inputs used to value each Fund’s assets and liabilities measured at fair value as of June 30, 2018:


Value Fund

Financial Instruments - Assets

 

Level 1

Level 2

Level 3

Total

 

 

 

 

 

    Common Stocks *

 $  3,535,865

$                 -

$          -

 $  3,535,865

    Corporate Bonds *

-

1,345,213

-

1,345,213

    U.S. Government Agencies & Obligations

-

9,898,263

-

9,898,263

    Short-Term Investments

1,862,470

-

-

1,862,470

        Total

 $  5,398,335

$ 11,243,476

$          -

 $ 16,641,811


Baldwin Fund

Financial Instruments - Assets

 

Level 1

Level 2

Level 3

Total

   

 

 

 

 

    Common Stocks *

$ 1,606,723

$          -

$          -

$ 1,606,723

    Exchange Traded Funds

250,658

-

-

250,658

    Purchased Options

105,173

10,510

-

115,683

    Short-Term Investments

499,557

-

-

499,557

        Total

 $ 2,462,111

$  10,510

$          -

 $ 2,472,621


 

Financial Instruments - Liabilities

 

Level 1

Level 2

Level 3

Total

    

 

 

 

 

    Written Options

 $ (58,690)

$ (26,530)

$          -

 $ (85,220)

        Total

 $ (58,690)

$ (26,530)

$          -

 $ (85,220)


Camelot Fund

Financial Instruments - Assets

 

Level 1

Level 2

Level 3

Total

   

 

 

 

 

    Common Stocks *

$ 8,302,330

$    22,609

$  17,934

$  8,342,873

    Asset-Backed Securities

-

186,819

-

186,819

    Closed-End Funds

2,196,300

-

-

2,196,300

    Convertible Bonds

-

502,430

-

502,430

    Corporate Bonds *

-

1,396,773

686,285

2,083,058

    Escrow Notes

-

-

-

-

    Mortgage-Backed Securities

-

100,456

-

100,456

    Municipal Bonds

-

617,531

-

617,531

    Preferred Stocks *

-

488,779

20,000

508,779

    Rights

-

155,336

-

155,336

    Structured Note

-

1,194,211

-

1,194,211

    Warrants

6,669

-

-

6,669

    Purchased Options

430,054

79,400

-

509,454

    Bank Deposit Accounts

3,922,192

-

-

3,922,192

        Total

 $ 14,857,545

$4,744,344

$ 724,219

 $ 20,326,108


 

Financial Instruments - Liabilities

 

Level 1

Level 2

Level 3

Total

Written Options:

 

 

 

 

    Call Options

 $     (81,431)

$ (48,025)

$          -

 $    (129,456)

    Put Options

(8,700)

-

 

(8,700)

    Common Stocks *

(1,878,859)

       -

        -

(1,878,859)

        Total

 $ (1,968,990)

$ (48,025)

$          -

 $ (2,017,015)


*Industry classifications for these categories are detailed on the Schedule of Investments of each Fund.


The Value Fund did not hold any Level 3 assets during the year ended June 30, 2018. The Baldwin Fund did not hold any Level 3 assets during the year ended June 30, 2018. It is the Funds policy to recognize transfers into and out of Level 1, Level 2 and Level 3 at the end of the reporting period. There have been no transfers in and out of Level 1 and Level 2 fair value measurements as of June 30, 2018, except for the Camelot Fund listed below:


Transfers out of Level 1 into Level 3

$866

Due to a decrease of market activity.


The following is a reconciliation of Camelot Fund’s Level 3 investments for which significant unobservable inputs were used in determining value. See Schedules of Investments for industry breakouts:


 

Balance as of June 30, 2017

Purchases

Sales

Realized Gain/

(Loss)

Net Unrealized Appreciation/

(Depreciation)

Amortized discounts/

Premiums

Transfers in to Level 3

Balance as of June 30, 2018

Common Stocks

$ 1,295,681

$           -

$(1,198,832)

$ 463,832

$(543,578)

$           -

$ 831

$    17,934

Preferred Stocks

653,000

-

(613,000)

-

(20,000)

-

-

20,000

Corporate Bonds

445,000

 

-

-

241,250

-

35

686,285

Escrow Notes

-

-

-

-

-

-

-

-

 

$ 2,393,681

$           -

$(1,811,832)

$ 463,832

$(322,328)

$           -

$ 866

$ 724,219


The following presents information about significant unobservable inputs related to Level 3 investments at June 30, 2018:

 

Camelot Fund

 

Asset

 

Fair Value at

 

Valuation

Unobservable

 

Input

 

Increase in Inputs

Categories

 

June 30, 2018

 

Technique

Input

 

Values

 

Impact on Valuation*

Common Stocks

 

 

 

 

 

 

 

 

     

Agriculture

 

$

831

 

Market approach

Uncertainty of any

 

$

0.00

 

Decrease

 

 

 

 

 

  

additional future payout

 

 

 

 

  

Automotive

 

 

8,593

 

Market approach

Last traded price of

 

$

1.45

 

Increase

 

 

 

 

 

  

pre-conversion bonds

 

 

 

 

  

Escrow Shares

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

IT Services

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Holding Companies

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

  

 

 

 

 

return method

additional future payout

 

 

 

 

  

Mining

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Real Estate

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Waste & Environmental

 

 

8,510

 

Market approach

Last traded price of non-

 

 

-55.22

%

Decrease

 Services & Equip.

 

 

 

 

   

restricted shares less a discount

 

 

 

 

  

Asset-Backed

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 Securities

 

 

 

 

return method

additional future payout

 

 

 

 

  

Corporate Bonds

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

Automotive

 

 

 

 

return method

additional future payout

 

 

 

 

  

Diversified Financial

 

 

6,250

 

Vendor pricing

Single broker quote

 

$

0.12

 

Decrease

  Services

 

 

 

 

 

 

 

 

 

 

     

Diversified Financial

 

 

680,000

 

Vendor pricing

Single broker quote

 

$

68.00

 

Increase

  Services

 

 

 

 

 

 

 

 

 

 

     

Oil, Gas & Coal

 

 

35

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Venture Capital

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Escrow Notes

 

 

0

 

Profitability expected

Uncertainty of any

 

$

0.00

 

Increase

 

 

 

 

 

return method

additional future payout

 

 

 

 

  

Preferred stock

 

 

 

 

 

 

 

 

 

 

     

Insurance

 

 

20,000

 

Vendor pricing

Single broker quote

 

$

2,000.00

 

Decrease


Note 4. Investment Management and Administrative Agreements


Value Fund

The Trust has a “Management Agreement” with FCP, with respect to the Value Fund. Under the terms of the Management Agreement, FCP manages the investment portfolio of the Value Fund, subject to policies adopted by the Trust’s Board of Trustees. Under the Management Agreement, FCP, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, and pays fees and expenses incurred by the Value Fund, including but not limited to, legal, auditing, accounting, and expenses of the custodian, along with equipment and executive personnel necessary for managing the assets of the Value Fund. FCP also pays the salaries and fees of all its officers and employees that serve as officers and trustees of the Trust. FCP pays all ordinary operating expenses of the Value Fund except brokerage fees and commissions, taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), Rule 12b-1 fees,  acquired fund fees and expenses, and extraordinary expenses. For its services and the payment of Value Fund ordinary operating expenses, FCP receives an annual investment management fee of 0.99% of the average daily net assets of the Value Fund.  For the year ended June 30, 2018, FCP earned management fees of $223,581 from the Value Fund.  As of June 30, 2018, the Value Fund owed FCP $14,051 for management fees.


FCP also provides administrative services to the Value Fund under an Administration Agreement and receives a fee equal to 0.25% of the Value Fund’s average daily net assets for those services.  Under the Administration Agreement, FCP pays all of the operating expenses of the Value Fund except management fees, Rule 12b-1 fees, brokerage, taxes, borrowing costs (such as interest and dividend expense of securities sold short), and extraordinary expenses.  For the year ended June 30, 2018, the Value Fund accrued $56,460 in administrative fees.  At June 30, 2018, the Value Fund owed $3,548 in administrative fees.  


Baldwin Fund

The Trust has a “Management Agreement” with LBC with respect to the Baldwin Fund.  Under the terms of the Management Agreement, LBC manages the investment portfolio of the Baldwin Fund, subject to policies adopted by the Trust's Board of Trustees.  Under the terms of the Management Agreement, the Baldwin Fund is authorized to pay LBC a management fee computed and accrued daily and paid monthly at an annual rate of 0.45% of the Baldwin Fund’s average daily net assets. For the year ended June 30, 2018, LBC’s fee of $11,362 was accrued by the Baldwin Fund for advisory fees.


LBC has contractually agreed to waive its advisory fees and/or to reimburse the Baldwin Fund’s expenses, at least until October 31, 2023, to the extent necessary to limit the Baldwin Fund’s ordinary operating expenses (exclusive of any front-end or contingent deferred loads, taxes, leverage interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expenses on securities sold short, underlying fund fees, Rule 12b-1 fees and expenses, or extraordinary expenses such as litigation) to 1.75% of the Baldwin Fund’s average daily net assets, subject to possible recoupment from the Baldwin Fund in future years on a rolling three year basis (within the three years after the fees have been deferred  or reimbursed) if such recoupment can be achieved within the foregoing expense limits.  LBC waived $11,362 of advisory fees and reimbursed the Baldwin Fund $68,135 for expenses during the year ended June 30, 2018. As of June 30, 2018, the LBC owed the Baldwin Fund $13,686 in reimbursement fees. At June 30, 2018, the amounts subject to future recoupment total $258,234 and are as follows:


Fiscal Year Ended

Recoverable Through

Amount

June 30, 2016

June 30, 2019

$ 101,433

June 30, 2017

June 30, 2020

$   77,304

June 30, 2018

June 30, 2021

$   79,497


Camelot Fund

Prior to February 24, 2018, the Fund’s advisor was Quaker Funds, Inc. (“QFI”). As compensation for its management services, the Fund was obligated to pay the QFI a fee computed and accrued daily and paid monthly at an annual rate of 1.30% of the average daily net assets of the Fund. For the period July 1, 2017 through February 23, 2018, QFI earned management fees of $213,899 from the Camelot Fund’s Predecessor Fund.  On February 24, 2018, the Trustees selected Camelot Advisors as the adviser to the Camelot Fund.  Under the terms of the management agreement, and subject to the Board of Trustees of Frank Funds, Camelot will be responsible for formulating the Fund’s investment policies, making ongoing investment decisions and engaging in portfolio transactions. Under the terms of the “Management Agreement” the Adviser manages the Fund’s investments subject to approval of the Board of Trustees; furnishes investment advice to the Fund on the basis of a continuous review of the portfolio; and recommends to the Fund when and to what extent securities should be purchased or sold.  As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.30% of the average daily net assets of the Fund.  The Management Agreement was approved for an initial term of two years, and will continue on a year to year basis thereafter, provided that continuance is approved at least annually by specific approval of the Board of Trustees of the Fund or by vote of the holders of a majority of the outstanding voting securities of the Fund.  For the period February 24, 2018 through June 30, 2018, Camelot Advisors earned management fees of $89,860 from the Camelot Fund. As of June 30, 2018, the Camelot Fund owed Camelot Advisors $4,358 for management fees.


Prior to February 24, 2018, QFI contractually agreed to waive its management fee to the extent that the total operating expenses of Camelot Fund’s Predecessor Fund (exclusive of interest, taxes, brokerage commissions and other costs incurred in connection with the purchase or sale of portfolio securities, and extraordinary items) exceed the annual rate of 1.99% for Class A shares, and 1.74% for Institutional Class shares of the average net assets of each class, respectively. For the period July 1, 2017 through February 23, 2018, QFI waived $71,617 for Class A, $19,443 for Class C, and $83,626 for Institutional Class, respectively, in total of $174,686 of advisory fees. If, at any time, the annualized expenses of Camelot Fund’s Predecessor Fund were less than the annualized expense ratio, the Trust, on behalf of Camelot Fund’s Predecessor Fund, would reimburse QFI for any fees previously waived and/or expenses previously assumed; provided, however, that repayment would be payable only to the extent that it (a) can be made during the three (3) years following the time at which the adviser waived fees or assumed expenses for Camelot Fund’s Predecessor Fund, and (b) can be repaid without causing the expenses of Camelot Fund’s Predecessor Fund to exceed the annualized expense ratio. This fee waiver agreement shall continue in effect from October 28, 2016 until November 1, 2017. This agreement shall automatically terminate upon termination of the advisory agreement between QFI and the Trust or, with respect to Camelot Fund’s Predecessor Fund, in the event of its merger or liquidation.  As of February 24, 2018, Camelot Advisors have contractually agreed to waive its management fees and/or assume expenses to the extent necessary to reduce the Total Annual Fund Operating Expenses (exclusive of any front-end or contingent deferred loads, taxes, all interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, underlying fund fees, 12b-1 fees and expenses, and extraordinary expenses such as litigation) when they exceed 1.74% of the Fund’s average daily net assets. This agreement will continue in effect until June 30, 2019.  Any waivers and reimbursements made by the Adviser to the Fund are subject to recoupment by the Adviser within three (3) fiscal years following the date of such waiver or reimbursement, provided that such recoupment does not cause the Total Annual Fund Operating Expenses to exceed the Annualized Expense Ratio in effect at the time of the (i) fee waiver and/or expense assumption, or (ii) the fee recoupment.  Camelot Advisors waived $32,071 for Class A, $7,648 for Class C, and $41,691 for Institutional Class, respectively, in total of $81,410 of advisory fees for the period February 24, 2018 through June 30, 2018 and June 22, 2018 for Class C. At June 30, 2018, the amounts subject to future recoupment total $81,410 and are as follows:


Fiscal Year Ended

Recoverable Through

Amount

June 30, 2018

June 30, 2021

$   81,410


FCP also provides administrative services to the Camelot Fund under an Administration Agreement and receives a fee equal to 0.21% of the Camelot Fund’s average daily net assets for those services.  Under the Administration Agreement, FCP pays all of the operating expenses of the Camelot Fund investment management fees; expenses of shareholders’ meetings and proxy solicitations; advertising, promotion, and other expenses incurred directly or indirectly in connection with the sale or distribution of the Fund’s shares that the Fund is authorized to pay pursuant to Rule 12b-1 under the 1940 Act; all brokerage fees and commissions, taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), and such extraordinary or non-recurring expenses as may arise, including litigation to which the Fund may be a party and indemnification of the Trust’s Trustees and officers with respect thereto. For the period June 22, 2018 through June 30, 2018, the Camelot Fund accrued $1,199 in administrative fees.  At June 30, 2018, the Camelot Fund owed $1,199 in administrative fees.  


Note 5. Distribution and Service Fees

The Board, with respect to the Value Fund has adopted plans under Rule 12b-1 that allow the Value Fund to pay distribution fees for the sale and distribution of its Investor Class and Class C shares as well as shareholder services. Investor Class and Class C shareholders of the Fund may pay annual 12b-1 expenses of up to 0.25% and 1.00%, respectively, of each classes’ average daily net assets.  For the year ended June 30, 2018, the Investor Class accrued $32,893 in distribution fees and Class C accrued $17,767 in distribution fees. At June 30, 2018, the Value Fund owed $13,509 in distribution fees.


The Board, with respect to the Baldwin Fund has adopted a plan under Rule 12b-1 of the 1940 Act that allows the Baldwin Fund to pay distribution and service fees annually for the sale and distribution of shares and servicing of shareholders (“12b-1 fees”). The Fund pays distribution fees of 1.00% of the Fund’s average daily net assets to LBC, as the Fund’s distributor.  For the year ended June 30, 2018, the Baldwin Fund accrued $25,182 in 12b-1 fees. At June 30, 2018, the Baldwin Fund owed $67 in distribution fees.


Prior to June 22, 2018, the Camelot Fund’s Predecessor Fund’s Class A distributor was Foreside Fund Services, LLC. For the period July 1, 2017 through June 21, 2018, Foreside Fund Services, LLC earned $50,241 in 12b-1 fees. At June 30, 2018, the Camelot Fund owed $2,863 in distribution fees to Foreside Fund Services, LLC.  As of June 22, 2018, the Board, with respect to the Camelot Fund Class A has adopted a plan under Rule 12b-1 of the 1940 Act that allows the Camelot Fund to pay distribution and service fees annually for the sale and distribution of shares and servicing of shareholders (“12b-1 fees”). The Fund pays distribution fees of 0.25% of the Fund’s average daily net assets to Arbor Court Capital LLC, as the Fund’s distributor.  For the period June 22, 2018 through June 30, 2018, the Camelot Fund accrued $676 in 12b-1 fees. At June 30, 2018, the Camelot Fund owed $676 in distribution fees.


Note 6. Related Party Transactions

Brian J. Frank and Monique Weiss are the control persons of FCP.  Brian Frank also serves as a trustee of the Trust, and both Mr. Frank and Ms. Weiss serve as officers of the Trust. Mr. Frank and Ms. Weiss receive benefits from FCP resulting from management fees paid to FCP by the Value Fund.


The Baldwin Fund pays LBC brokerage commissions for executing securities transactions, which are separate from, and in addition to, the fees paid by the Baldwin Fund to LBC for advisory services.  For the year ended June 30, 2018, LBC was paid $27,076 in brokerage commissions. FCP receives administration fees from the Baldwin Fund of $3,000 per month.  Administrative fees paid to FCP for the year ended June 30, 2018, were $36,452.  LBC acts as the distributor of the Baldwin Fund.  At June 30, 2018, the Fund owed LBC $3,000.    


Note 7. Capital Share Transactions

The Trust is authorized to issue an unlimited number of shares of separate series.  The total paid-in capital as of June 30, 2018, was $15,900,044, $3,372,452 and $31,862,501 for the Value Fund, the Baldwin Fund, and the Camelot Fund, respectively.  Transactions in capital were as follows:


Value Fund – Investor Class

July 1, 2017 through June 30, 2018

July 1, 2016 through June 30, 2017

 

 

 

 

 

 

Shares

Amount

Shares

Amount

Shares sold

65,687

$      833,970

401,834

$    5,264,183

Shares reinvested

-

-

33,831

433,374

Shares redeemed

  (598,106)

   (7,528,023)

  (542,665)

   (7,096,305)

    Net Decrease

  (532,419)

$ (6,694,053)

  (107,000)

$ (1,398,748)



Value Fund – Class C

July 1, 2017 through June 30, 2018

July 1, 2016 through June 30, 2017

 

 

 

 

 

 

Shares

Amount

Shares

Amount

Shares sold

22,055

$     260,940

15,892

$      199,499

Shares reinvested

-

-

7,905

95,889

Shares redeemed

  (100,254)

  (1,190,899)

  (133,777)

   (1,642,255)

    Net Decrease

    (78,199)

$   (929,959)

  (109,980)

$ (1,346,867)


Value Fund – Institutional Class

July 1, 2017 through June 30, 2018

July 1, 2016 through June 30, 2017

 

 

 

 

 

 

Shares

Amount

Shares

Amount

Shares sold

385,112

$    4,886,715

138,237

$   1,819,310

Shares reinvested

-

-

14,632

189,191

Shares redeemed

  (455,768)

   (5,824,055)

  (212,803)

   (2,801,675)

    Net Decrease

    (70,656)

$     (937,340)

    (59,934)

$    (793,174)


Baldwin Fund

July 1, 2017 through June 30, 2018

July 1, 2016 through June 30, 2017

 

 

 

 

 

 

Shares

Amount

Shares

Amount

Shares sold

1,154

$        8,000

2,013

$     14,100

Shares reinvested

3,276

22,640

-

-

Shares redeemed

  (30,740)

   (212,718)

  (54,431)

   (380,742)

    Net Decrease

  (26,310)

$ (182,078)

  (52,418)

$ (366,642)


Camelot Fund – Class A

July 1, 2017 through June 30, 2018

July 1, 2016 through June 30, 2017

 

 

 

 

 

 

Shares

Amount

Shares

Amo